Correlation Between E W and TrueCar

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

Diversification Opportunities for E W and TrueCar

0.04

Correlation Coefficient

E W  TrueCar

Significant diversification

The 3 months correlation between SSP and TrueCar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and TrueCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueCar 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 TrueCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueCar has no effect on the direction of E W i.e., E W and TrueCar go up and down completely randomly.

Pair Corralation between E W and TrueCar

Considering the 90-day investment horizon E W Scripps is expected to generate 4.0 times more return on investment than TrueCar. However, E W is 4.0 times more volatile than TrueCar. It trades about 0.23 of its potential returns per unit of risk. TrueCar is currently generating about -0.11 per unit of risk. If you would invest  228.00  in E W Scripps on August 16, 2025 and sell it today you would earn a total of  78.00  from holding E W Scripps or generate 34.21% return on investment over 90 days.

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

E W Scripps  vs.  TrueCar

E W Scripps

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 3 (%) 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.

TrueCar

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TrueCar are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, TrueCar exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E W and TrueCar

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

The idea behind E W Scripps and TrueCar 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.