Correlation Between Clear Channel and Shutterstock
Can any of the company-specific risk be diversified away by investing in both Clear Channel and Shutterstock 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 Shutterstock 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 Shutterstock, you can compare the effects of market volatilities on Clear Channel and Shutterstock 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 Shutterstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Channel and Shutterstock.
Diversification Opportunities for Clear Channel and Shutterstock
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clear and Shutterstock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor and Shutterstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shutterstock 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 Shutterstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shutterstock has no effect on the direction of Clear Channel i.e., Clear Channel and Shutterstock go up and down completely randomly.
Pair Corralation between Clear Channel and Shutterstock
Considering the 90-day investment horizon Clear Channel Outdoor is expected to generate 1.23 times more return on investment than Shutterstock. However, Clear Channel is 1.23 times more volatile than Shutterstock. It trades about 0.18 of its potential returns per unit of risk. Shutterstock is currently generating about 0.0 per unit of risk. If you would invest 128.00 in Clear Channel Outdoor on September 3, 2025 and sell it today you would earn a total of 70.00 from holding Clear Channel Outdoor or generate 54.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Channel Outdoor vs. Shutterstock
Performance |
| Timeline |
| Clear Channel Outdoor |
| Shutterstock |
Clear Channel and Shutterstock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Channel and Shutterstock
The main advantage of trading using opposite Clear Channel and Shutterstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel position performs unexpectedly, Shutterstock 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 Shutterstock will offset losses from the drop in Shutterstock's long position.| Clear Channel vs. General Datacomm Industries | Clear Channel vs. Piedmont Office Realty | Clear Channel vs. Airborne Wireless Network | Clear Channel vs. World Houseware Limited |
| Shutterstock vs. Equal Trading | Shutterstock vs. Gladstone Investment | Shutterstock vs. Puhui Wealth Investment | Shutterstock vs. Westshore Terminals Investment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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