Correlation Between Nexstar Broadcasting and International Media
Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting and International Media 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 Nexstar Broadcasting and International Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Broadcasting Group and International Media Acquisition, you can compare the effects of market volatilities on Nexstar Broadcasting and International Media 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 Nexstar Broadcasting with a short position of International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and International Media.
Diversification Opportunities for Nexstar Broadcasting and International Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and International is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media and Nexstar Broadcasting 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 Nexstar Broadcasting Group are associated (or correlated) with International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of Nexstar Broadcasting i.e., Nexstar Broadcasting and International Media go up and down completely randomly.
Pair Corralation between Nexstar Broadcasting and International Media
If you would invest 16,527 in Nexstar Broadcasting Group on September 13, 2024 and sell it today you would lose (168.00) from holding Nexstar Broadcasting Group or give up 1.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
Nexstar Broadcasting Group vs. International Media Acquisitio
Performance |
Timeline |
Nexstar Broadcasting |
International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexstar Broadcasting and International Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nexstar Broadcasting and International Media
The main advantage of trading using opposite Nexstar Broadcasting and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Broadcasting position performs unexpectedly, International Media 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 International Media will offset losses from the drop in International Media's long position.Nexstar Broadcasting vs. News Corp B | Nexstar Broadcasting vs. Fox Corp Class | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. AMC Networks |
International Media vs. Cannae Holdings | International Media vs. CAVA Group, | International Media vs. Reservoir Media | International Media vs. Texas Roadhouse |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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