Correlation Between Lee Enterprises and New York

Can any of the company-specific risk be diversified away by investing in both Lee Enterprises and New York 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 Lee Enterprises and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lee Enterprises Incorporated and New York Times, you can compare the effects of market volatilities on Lee Enterprises and New York 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 Lee Enterprises with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lee Enterprises and New York.

Diversification Opportunities for Lee Enterprises and New York

0.75

Correlation Coefficient

Lee Enterprises  New York

Poor diversification

The 3 months correlation between Lee and New is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lee Enterprises Incorporated and New York Times in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Times and Lee Enterprises 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 Lee Enterprises Incorporated are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Times has no effect on the direction of Lee Enterprises i.e., Lee Enterprises and New York go up and down completely randomly.

Pair Corralation between Lee Enterprises and New York

Considering the 90-day investment horizon Lee Enterprises Incorporated is expected to under-perform the New York. In addition to that, Lee Enterprises is 1.66 times more volatile than New York Times. It trades about -0.28 of its total potential returns per unit of risk. New York Times is currently generating about -0.1 per unit of volatility. If you would invest  5,412  in New York Times on November 28, 2024 and sell it today you would lose (624.00) from holding New York Times or give up 11.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Lee Enterprises Incorporated  vs.  New York Times

Lee Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lee Enterprises Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

New York Times

Risk-Adjusted Performance

Very Weak

Over the last 90 days New York Times has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Lee Enterprises and New York

The main advantage of trading using opposite Lee Enterprises and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Enterprises position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.

The idea behind Lee Enterprises Incorporated and New York Times 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.