Correlation Between Cheer Holding and Cumulus Media

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

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

Diversification Opportunities for Cheer Holding and Cumulus Media

-0.02

Correlation Coefficient

Cheer Holding  Cumulus Media

Good diversification

The 3 months correlation between Cheer and Cumulus is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cheer Holding and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and Cheer Holding 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 Cheer Holding are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Cheer Holding i.e., Cheer Holding and Cumulus Media go up and down completely randomly.

Pair Corralation between Cheer Holding and Cumulus Media

If you would invest  15.00  in Cumulus Media Class on May 27, 2025 and sell it today you would earn a total of  0.00  from holding Cumulus Media Class or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Cheer Holding  vs.  Cumulus Media Class

Cheer Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Cheer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Cheer Holding is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Cumulus Media Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Cumulus Media is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cheer Holding and Cumulus Media

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

The idea behind Cheer Holding and Cumulus Media Class 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.