Correlation Between Nexstar Broadcasting and Determine

Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting and Determine 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 Determine 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 Determine, you can compare the effects of market volatilities on Nexstar Broadcasting and Determine 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 Determine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and Determine.

Diversification Opportunities for Nexstar Broadcasting and Determine

0.0

Correlation Coefficient

Nexstar Broadcasting  Determine

Pay attention - limited upside

The 3 months correlation between Nexstar and Determine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and Determine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Determine 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 Determine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Determine has no effect on the direction of Nexstar Broadcasting i.e., Nexstar Broadcasting and Determine go up and down completely randomly.

Pair Corralation between Nexstar Broadcasting and Determine

If you would invest  15,573  in Nexstar Broadcasting Group on March 5, 2024 and sell it today you would earn a total of  996.00  from holding Nexstar Broadcasting Group or generate 6.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nexstar Broadcasting Group  vs.  Determine

Nexstar Broadcasting

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nexstar Broadcasting Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Nexstar Broadcasting may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Determine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Determine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Determine is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nexstar Broadcasting and Determine

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

The idea behind Nexstar Broadcasting Group and Determine 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.