Correlation Between Academy Sports and Network Media

Can any of the company-specific risk be diversified away by investing in both Academy Sports and Network 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 Academy Sports and Network Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Academy Sports Outdoors and Network Media Group, you can compare the effects of market volatilities on Academy Sports and Network 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 Academy Sports with a short position of Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Network Media.

Diversification Opportunities for Academy Sports and Network Media

0.23

Correlation Coefficient

Academy Sports  Network Media

Modest diversification

The 3 months correlation between Academy and Network is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of Academy Sports i.e., Academy Sports and Network Media go up and down completely randomly.

Pair Corralation between Academy Sports and Network Media

Considering the 90-day investment horizon Academy Sports Outdoors is expected to generate 0.7 times more return on investment than Network Media. However, Academy Sports Outdoors is 1.43 times less risky than Network Media. It trades about 0.02 of its potential returns per unit of risk. Network Media Group is currently generating about -0.06 per unit of risk. If you would invest  5,411  in Academy Sports Outdoors on July 17, 2025 and sell it today you would earn a total of  17.00  from holding Academy Sports Outdoors or generate 0.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Academy Sports Outdoors  vs.  Network Media Group

Academy Sports Outdoors

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Academy Sports Outdoors are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Academy Sports is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Network Media Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Network Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Academy Sports and Network Media

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

The idea behind Academy Sports Outdoors and Network Media Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..