Correlation Between E W and Townsquare Media

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

Diversification Opportunities for E W and Townsquare Media

-0.81

Correlation Coefficient

E W  Townsquare Media

Pay attention - limited upside

The 3 months correlation between SSP and Townsquare is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding E W Scripps and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media 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 Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of E W i.e., E W and Townsquare Media go up and down completely randomly.

Pair Corralation between E W and Townsquare Media

Considering the 90-day investment horizon E W Scripps is expected to generate 2.29 times more return on investment than Townsquare Media. However, E W is 2.29 times more volatile than Townsquare Media. It trades about 0.14 of its potential returns per unit of risk. Townsquare Media is currently generating about -0.12 per unit of risk. If you would invest  274.00  in E W Scripps on September 16, 2025 and sell it today you would earn a total of  167.00  from holding E W Scripps or generate 60.95% return on investment over 90 days.

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

E W Scripps  vs.  Townsquare Media

E W Scripps

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, E W reported solid returns over the last few months and may actually be approaching a breakup point.

Townsquare Media

Risk-Adjusted Performance

Weakest

Over the last 90 days Townsquare Media has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with E W and Townsquare Media

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

The idea behind E W Scripps and Townsquare Media 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.