Correlation Between Gannett and New York

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

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

Diversification Opportunities for Gannett and New York

0.23

Correlation Coefficient

Gannett  New York

Modest diversification

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

Pair Corralation between Gannett and New York

Considering the 90-day investment horizon Gannett Co is expected to generate 2.37 times more return on investment than New York. However, Gannett is 2.37 times more volatile than New York Times. It trades about 0.16 of its potential returns per unit of risk. New York Times is currently generating about 0.04 per unit of risk. If you would invest  331.00  in Gannett Co on May 7, 2025 and sell it today you would earn a total of  86.00  from holding Gannett Co or generate 25.98% return on investment over 90 days.

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

Gannett Co  vs.  New York Times

Gannett

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gannett Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Gannett demonstrated solid returns over the last few months and may actually be approaching a breakup point.

New York Times

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in New York Times are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, New York is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Gannett and New York

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

The idea behind Gannett Co and New York Times 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.