Correlation Between Gray Television and Audacy

Can any of the company-specific risk be diversified away by investing in both Gray Television and Audacy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gray Television and Audacy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gray Television and Audacy Inc, you can compare the effects of market volatilities on Gray Television and Audacy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gray Television with a short position of Audacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Audacy.

Diversification Opportunities for Gray Television and Audacy

0.0

Correlation Coefficient

Gray Television  Audacy

Pay attention - limited upside

The 3 months correlation between Gray and Audacy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Audacy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audacy Inc and Gray Television is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gray Television are associated (or correlated) with Audacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audacy Inc has no effect on the direction of Gray Television i.e., Gray Television and Audacy go up and down completely randomly.

Pair Corralation between Gray Television and Audacy

If you would invest  295.00  in Gray Television on December 27, 2024 and sell it today you would earn a total of  174.00  from holding Gray Television or generate 58.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gray Television  vs.  Audacy Inc

Gray Television

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gray Television are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Gray Television displayed solid returns over the last few months and may actually be approaching a breakup point.

Audacy Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Audacy Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Audacy is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gray Television and Audacy

The main advantage of trading using opposite Gray Television and Audacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television position performs unexpectedly, Audacy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Audacy will offset losses from the drop in Audacy's long position.

The idea behind Gray Television and Audacy Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.