Correlation Between Townsquare Media and Scisparc

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

By analyzing existing cross correlation between Townsquare Media and Scisparc, you can compare the effects of market volatilities on Townsquare Media and Scisparc 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 Townsquare Media with a short position of Scisparc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and Scisparc.

Diversification Opportunities for Townsquare Media and Scisparc

0.48

Correlation Coefficient

Townsquare Media  Scisparc

Very weak diversification

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

Pair Corralation between Townsquare Media and Scisparc

Considering the 90-day investment horizon Townsquare Media is expected to generate 0.64 times more return on investment than Scisparc. However, Townsquare Media is 1.55 times less risky than Scisparc. It trades about 0.02 of its potential returns per unit of risk. Scisparc is currently generating about -0.06 per unit of risk. If you would invest  689.00  in Townsquare Media on May 15, 2025 and sell it today you would earn a total of  13.00  from holding Townsquare Media or generate 1.89% return on investment over 90 days.

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

Townsquare Media  vs.  Scisparc

Townsquare Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Townsquare Media are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Townsquare Media is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic 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 Townsquare Media and Scisparc

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

The idea behind Townsquare Media and Scisparc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.