Correlation Between Entravision Communications and E W

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

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

Diversification Opportunities for Entravision Communications and E W

0.93

Correlation Coefficient

Entravision Communications  E W

Almost no diversification

The 3 months correlation between Entravision and SSP is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Entravision Communications and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps and Entravision Communications 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 Entravision Communications are associated (or correlated) with E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of Entravision Communications i.e., Entravision Communications and E W go up and down completely randomly.

Pair Corralation between Entravision Communications and E W

Considering the 90-day investment horizon Entravision Communications is expected to generate 1.94 times less return on investment than E W. But when comparing it to its historical volatility, Entravision Communications is 1.9 times less risky than E W. It trades about 0.16 of its potential returns per unit of risk. E W Scripps is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  201.00  in E W Scripps on April 30, 2025 and sell it today you would earn a total of  136.00  from holding E W Scripps or generate 67.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Entravision Communications  vs.  E W Scripps

Entravision Communications

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Entravision Communications are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Entravision Communications exhibited solid returns over the last few months and may actually be approaching a breakup point.

E W Scripps

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, E W reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Entravision Communications and E W

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

The idea behind Entravision Communications and E W Scripps 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.