Correlation Between CuriosityStream and Salem Media

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

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

Diversification Opportunities for CuriosityStream and Salem Media

-0.54

Correlation Coefficient

CuriosityStream  Salem Media

Excellent diversification

The 3 months correlation between CuriosityStream and Salem is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CuriosityStream and Salem Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salem Media Group and CuriosityStream 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 CuriosityStream are associated (or correlated) with Salem Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salem Media Group has no effect on the direction of CuriosityStream i.e., CuriosityStream and Salem Media go up and down completely randomly.

Pair Corralation between CuriosityStream and Salem Media

If you would invest  1.25  in CuriosityStream on August 25, 2024 and sell it today you would earn a total of  0.81  from holding CuriosityStream or generate 64.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.63%
Values	Daily Returns

CuriosityStream  vs.  Salem Media Group

CuriosityStream

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CuriosityStream are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward indicators, CuriosityStream showed solid returns over the last few months and may actually be approaching a breakup point.

Salem Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with CuriosityStream and Salem Media

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

The idea behind CuriosityStream and Salem 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.