Correlation Between BuzzFeed and CTS

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

By analyzing existing cross correlation between BuzzFeed and CTS Corporation, you can compare the effects of market volatilities on BuzzFeed and CTS 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 BuzzFeed with a short position of CTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BuzzFeed and CTS.

Diversification Opportunities for BuzzFeed and CTS

0.82

Correlation Coefficient

BuzzFeed  CTS

Very poor diversification

The 3 months correlation between BuzzFeed and CTS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BuzzFeed and CTS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Corporation and BuzzFeed 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 BuzzFeed are associated (or correlated) with CTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Corporation has no effect on the direction of BuzzFeed i.e., BuzzFeed and CTS go up and down completely randomly.

Pair Corralation between BuzzFeed and CTS

Assuming the 90 days horizon BuzzFeed is expected to generate 5.33 times more return on investment than CTS. However, BuzzFeed is 5.33 times more volatile than CTS Corporation. It trades about 0.03 of its potential returns per unit of risk. CTS Corporation is currently generating about -0.12 per unit of risk. If you would invest  11.00  in BuzzFeed on February 3, 2025 and sell it today you would lose (2.50) from holding BuzzFeed or give up 22.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	93.75%
Values	Daily Returns

BuzzFeed  vs.  CTS Corp.

BuzzFeed

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BuzzFeed are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, BuzzFeed showed solid returns over the last few months and may actually be approaching a breakup point.

CTS Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTS Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BuzzFeed and CTS

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

The idea behind BuzzFeed and CTS Corporation 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.