Correlation Between E W and Nexxen International

Can any of the company-specific risk be diversified away by investing in both E W and Nexxen International 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 Nexxen International 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 Nexxen International, you can compare the effects of market volatilities on E W and Nexxen International 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 Nexxen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of E W and Nexxen International.

Diversification Opportunities for E W and Nexxen International

0.71

Correlation Coefficient

E W  Nexxen International

Poor diversification

The 3 months correlation between SSP and Nexxen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International 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 Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of E W i.e., E W and Nexxen International go up and down completely randomly.

Pair Corralation between E W and Nexxen International

Considering the 90-day investment horizon E W Scripps is expected to generate 1.91 times more return on investment than Nexxen International. However, E W is 1.91 times more volatile than Nexxen International. It trades about 0.02 of its potential returns per unit of risk. Nexxen International is currently generating about -0.12 per unit of risk. If you would invest  298.00  in E W Scripps on August 14, 2025 and sell it today you would earn a total of  1.00  from holding E W Scripps or generate 0.34% return on investment over 90 days.

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

E W Scripps  vs.  Nexxen International

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 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, E W may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Nexxen International

Risk-Adjusted Performance

Weakest

Over the last 90 days Nexxen International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with E W and Nexxen International

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

The idea behind E W Scripps and Nexxen International 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.