Correlation Between Gray Television and Fubotv
Can any of the company-specific risk be diversified away by investing in both Gray Television and Fubotv 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 Fubotv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gray Television and Fubotv Inc, you can compare the effects of market volatilities on Gray Television and Fubotv 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 Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Fubotv.
Diversification Opportunities for Gray Television and Fubotv
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gray and Fubotv is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv 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 Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of Gray Television i.e., Gray Television and Fubotv go up and down completely randomly.
Pair Corralation between Gray Television and Fubotv
Considering the 90-day investment horizon Gray Television is expected to under-perform the Fubotv. But the stock apears to be less risky and, when comparing its historical volatility, Gray Television is 3.13 times less risky than Fubotv. The stock trades about -0.02 of its potential returns per unit of risk. The Fubotv Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Fubotv Inc on December 1, 2024 and sell it today you would earn a total of 173.00 from holding Fubotv Inc or generate 133.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gray Television vs. Fubotv Inc
Performance |
Timeline |
Gray Television |
Fubotv Inc |
Gray Television and Fubotv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gray Television and Fubotv
The main advantage of trading using opposite Gray Television and Fubotv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television position performs unexpectedly, Fubotv 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 Fubotv will offset losses from the drop in Fubotv's long position.Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television vs. Cumulus Media Class |
Fubotv vs. Cumulus Media Class | Fubotv vs. iHeartMedia Class A | Fubotv vs. Gray Television | Fubotv vs. E W Scripps |
Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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