Correlation Between New York and E W

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

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

Diversification Opportunities for New York and E W

0.47

Correlation Coefficient

New York  E W

Very weak diversification

The 3 months correlation between New and SSP is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding New York Times and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps and New York 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 New York Times are associated (or correlated) with E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of New York i.e., New York and E W go up and down completely randomly.

Pair Corralation between New York and E W

Considering the 90-day investment horizon New York Times is expected to generate 0.26 times more return on investment than E W. However, New York Times is 3.78 times less risky than E W. It trades about 0.05 of its potential returns per unit of risk. E W Scripps is currently generating about -0.03 per unit of risk. If you would invest  3,517  in New York Times on December 2, 2024 and sell it today you would earn a total of  1,292  from holding New York Times or generate 36.74% return on investment over 90 days.

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

New York Times  vs.  E W Scripps

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.

E W Scripps

Risk-Adjusted Performance

Very Weak

Over the last 90 days E W Scripps has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with New York and E W

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

The idea behind New York Times and E W Scripps 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.