Correlation Between News Corp and Lee Enterprises

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

By analyzing existing cross correlation between News Corp B and Lee Enterprises Incorporated, you can compare the effects of market volatilities on News Corp and Lee Enterprises 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 News Corp with a short position of Lee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Lee Enterprises.

Diversification Opportunities for News Corp and Lee Enterprises

-0.46

Correlation Coefficient

News Corp  Lee Enterprises

Very good diversification

The 3 months correlation between News and Lee is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding News Corp B and Lee Enterprises Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lee Enterprises and News Corp 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 News Corp B are associated (or correlated) with Lee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lee Enterprises has no effect on the direction of News Corp i.e., News Corp and Lee Enterprises go up and down completely randomly.

Pair Corralation between News Corp and Lee Enterprises

Considering the 90-day investment horizon News Corp B is expected to generate 0.23 times more return on investment than Lee Enterprises. However, News Corp B is 4.32 times less risky than Lee Enterprises. It trades about 0.07 of its potential returns per unit of risk. Lee Enterprises Incorporated is currently generating about -0.22 per unit of risk. If you would invest  3,204  in News Corp B on May 6, 2025 and sell it today you would earn a total of  121.00  from holding News Corp B or generate 3.78% return on investment over 90 days.

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

News Corp B  vs.  Lee Enterprises Incorporated

News Corp B

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp B are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, News Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Lee Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lee Enterprises Incorporated 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with News Corp and Lee Enterprises

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

The idea behind News Corp B and Lee Enterprises Incorporated 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.