Correlation Between Audacy and Beasley Broadcast

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

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

Diversification Opportunities for Audacy and Beasley Broadcast

0.0

Correlation Coefficient

Audacy  Beasley Broadcast

Pay attention - limited upside

The 3 months correlation between Audacy and Beasley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Audacy Inc and Beasley Broadcast Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beasley Broadcast and Audacy 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 Audacy Inc are associated (or correlated) with Beasley Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beasley Broadcast has no effect on the direction of Audacy i.e., Audacy and Beasley Broadcast go up and down completely randomly.

Pair Corralation between Audacy and Beasley Broadcast

If you would invest (100.00) in Audacy Inc on September 3, 2024 and sell it today you would earn a total of  100.00  from holding Audacy Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Audacy Inc  vs.  Beasley Broadcast Group

Audacy Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Audacy Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Audacy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Beasley Broadcast

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beasley Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Audacy and Beasley Broadcast

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

The idea behind Audacy Inc and Beasley Broadcast Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.