Correlation Between Clear Channel and Marcus
Can any of the company-specific risk be diversified away by investing in both Clear Channel and Marcus 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 Clear Channel and Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Channel Outdoor and Marcus, you can compare the effects of market volatilities on Clear Channel and Marcus 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 Clear Channel with a short position of Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Channel and Marcus.
Diversification Opportunities for Clear Channel and Marcus
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clear and Marcus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Clear Channel 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 Clear Channel Outdoor are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Clear Channel i.e., Clear Channel and Marcus go up and down completely randomly.
Pair Corralation between Clear Channel and Marcus
Considering the 90-day investment horizon Clear Channel Outdoor is expected to generate 1.6 times more return on investment than Marcus. However, Clear Channel is 1.6 times more volatile than Marcus. It trades about 0.09 of its potential returns per unit of risk. Marcus is currently generating about -0.1 per unit of risk. If you would invest 105.00 in Clear Channel Outdoor on June 1, 2025 and sell it today you would earn a total of 19.00 from holding Clear Channel Outdoor or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Channel Outdoor vs. Marcus
Performance |
| Timeline |
| Clear Channel Outdoor |
| Marcus |
Clear Channel and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Channel and Marcus
The main advantage of trading using opposite Clear Channel and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| Clear Channel vs. Cimpress NV | Clear Channel vs. Criteo Sa | Clear Channel vs. Entravision Communications | Clear Channel vs. Advantage Solutions |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
Check out your portfolio center.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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