Correlation Between POSCO Holdings and Townsquare Media
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Townsquare 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 POSCO Holdings and Townsquare Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Townsquare Media, you can compare the effects of market volatilities on POSCO Holdings and Townsquare 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 POSCO Holdings with a short position of Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Townsquare Media.
Diversification Opportunities for POSCO Holdings and Townsquare Media
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POSCO and Townsquare is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Townsquare Media go up and down completely randomly.
Pair Corralation between POSCO Holdings and Townsquare Media
Considering the 90-day investment horizon POSCO Holdings is expected to under-perform the Townsquare Media. But the stock apears to be less risky and, when comparing its historical volatility, POSCO Holdings is 1.27 times less risky than Townsquare Media. The stock trades about -0.1 of its potential returns per unit of risk. The Townsquare Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,078 in Townsquare Media on February 2, 2024 and sell it today you would earn a total of 120.00 from holding Townsquare Media or generate 11.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
POSCO Holdings vs. Townsquare Media
Performance |
Timeline |
POSCO Holdings |
Townsquare Media |
POSCO Holdings and Townsquare Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with POSCO Holdings and Townsquare Media
The main advantage of trading using opposite POSCO Holdings and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Townsquare 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 Townsquare Media will offset losses from the drop in Townsquare Media's long position.POSCO Holdings vs. Evolv Technologies Holdings | POSCO Holdings vs. Aquagold International | POSCO Holdings vs. Barloworld Ltd ADR | POSCO Holdings vs. Morningstar Unconstrained Allocation |
Townsquare Media vs. Marchex | Townsquare Media vs. Direct Digital Holdings | Townsquare Media vs. Cimpress NV | Townsquare Media vs. Emerald Expositions Events |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |