Correlation Between Gannett and Pop Culture
Can any of the company-specific risk be diversified away by investing in both Gannett and Pop Culture 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 Gannett and Pop Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gannett Co and Pop Culture Group, you can compare the effects of market volatilities on Gannett and Pop Culture 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 Gannett with a short position of Pop Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gannett and Pop Culture.
Diversification Opportunities for Gannett and Pop Culture
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gannett and Pop is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and Pop Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pop Culture Group and Gannett 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 Gannett Co are associated (or correlated) with Pop Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pop Culture Group has no effect on the direction of Gannett i.e., Gannett and Pop Culture go up and down completely randomly.
Pair Corralation between Gannett and Pop Culture
Considering the 90-day investment horizon Gannett is expected to generate 10.33 times less return on investment than Pop Culture. But when comparing it to its historical volatility, Gannett Co is 7.93 times less risky than Pop Culture. It trades about 0.08 of its potential returns per unit of risk. Pop Culture Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 61.00 in Pop Culture Group on July 8, 2025 and sell it today you would earn a total of 26.00 from holding Pop Culture Group or generate 42.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gannett Co vs. Pop Culture Group
Performance |
| Timeline |
| Gannett |
| Pop Culture Group |
Gannett and Pop Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gannett and Pop Culture
The main advantage of trading using opposite Gannett and Pop Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett position performs unexpectedly, Pop Culture 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 Pop Culture will offset losses from the drop in Pop Culture's long position.| Gannett vs. Warner Music Group | Gannett vs. News Corp A | Gannett vs. Expedia Group | Gannett vs. Match Group |
| Pop Culture vs. Reading International | Pop Culture vs. Hollywall Entertainment | Pop Culture vs. Brera Holdings PLC | Pop Culture vs. Society Pass |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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