Correlation Between News Corp and Nexstar Broadcasting
Can any of the company-specific risk be diversified away by investing in both News Corp and Nexstar Broadcasting 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 News Corp and Nexstar Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp A and Nexstar Broadcasting Group, you can compare the effects of market volatilities on News Corp and Nexstar Broadcasting 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 News Corp with a short position of Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Nexstar Broadcasting.
Diversification Opportunities for News Corp and Nexstar Broadcasting
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between News and Nexstar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting and News Corp 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 News Corp A are associated (or correlated) with Nexstar Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Broadcasting has no effect on the direction of News Corp i.e., News Corp and Nexstar Broadcasting go up and down completely randomly.
Pair Corralation between News Corp and Nexstar Broadcasting
Given the investment horizon of 90 days News Corp A is expected to under-perform the Nexstar Broadcasting. But the stock apears to be less risky and, when comparing its historical volatility, News Corp A is 1.46 times less risky than Nexstar Broadcasting. The stock trades about -0.37 of its potential returns per unit of risk. The Nexstar Broadcasting Group is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 17,189 in Nexstar Broadcasting Group on January 27, 2024 and sell it today you would lose (1,091) from holding Nexstar Broadcasting Group or give up 6.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Corp A vs. Nexstar Broadcasting Group
Performance |
| Timeline |
| News Corp A |
| Nexstar Broadcasting |
News Corp and Nexstar Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and Nexstar Broadcasting
The main advantage of trading using opposite News Corp and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp position performs unexpectedly, Nexstar Broadcasting 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 Nexstar Broadcasting will offset losses from the drop in Nexstar Broadcasting's long position.| News Corp vs. Fox Corp Class | News Corp vs. Liberty Media | News Corp vs. Marcus | News Corp vs. Madison Square Garden |
| Nexstar Broadcasting vs. Walt Disney | Nexstar Broadcasting vs. Roku Inc | Nexstar Broadcasting vs. Netflix | Nexstar Broadcasting vs. AMC Entertainment Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |