Correlation Between Cumulus Media and Clear Channel
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and Clear Channel 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 Cumulus Media and Clear Channel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Clear Channel Outdoor, you can compare the effects of market volatilities on Cumulus Media and Clear Channel 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 Cumulus Media with a short position of Clear Channel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Clear Channel.
Diversification Opportunities for Cumulus Media and Clear Channel
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cumulus and Clear is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Clear Channel Outdoor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Channel Outdoor and Cumulus 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 Cumulus Media Class are associated (or correlated) with Clear Channel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Channel Outdoor has no effect on the direction of Cumulus Media i.e., Cumulus Media and Clear Channel go up and down completely randomly.
Pair Corralation between Cumulus Media and Clear Channel
If you would invest 114.00 in Clear Channel Outdoor on June 9, 2025 and sell it today you would earn a total of 18.00 from holding Clear Channel Outdoor or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Cumulus Media Class vs. Clear Channel Outdoor
Performance |
| Timeline |
| Cumulus Media Class |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Clear Channel Outdoor |
Cumulus Media and Clear Channel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Clear Channel
The main advantage of trading using opposite Cumulus Media and Clear Channel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, Clear Channel 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 Clear Channel will offset losses from the drop in Clear Channel's long position.| Cumulus Media vs. iHeartMedia Class A | Cumulus Media vs. Beasley Broadcast Group | Cumulus Media vs. Saga Communications | Cumulus Media vs. Entravision Communications |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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