Correlation Between E W and CTRL Group

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

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

Diversification Opportunities for E W and CTRL Group

-0.48

Correlation Coefficient

E W  CTRL Group

Very good diversification

The 3 months correlation between SSP and CTRL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and CTRL Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTRL Group Limited and E W 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 E W Scripps are associated (or correlated) with CTRL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTRL Group Limited has no effect on the direction of E W i.e., E W and CTRL Group go up and down completely randomly.

Pair Corralation between E W and CTRL Group

Considering the 90-day investment horizon E W is expected to generate 31.12 times less return on investment than CTRL Group. But when comparing it to its historical volatility, E W Scripps is 13.53 times less risky than CTRL Group. It trades about 0.03 of its potential returns per unit of risk. CTRL Group Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  651.00  in CTRL Group Limited on May 13, 2025 and sell it today you would lose (461.00) from holding CTRL Group Limited or give up 70.81% of portfolio value over 90 days.

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

E W Scripps  vs.  CTRL Group Limited

E W Scripps

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, E W may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CTRL Group Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CTRL Group Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, CTRL Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E W and CTRL Group

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

The idea behind E W Scripps and CTRL Group Limited 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.