Correlation Between Nexxen International and Gray Television

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Can any of the company-specific risk be diversified away by investing in both Nexxen International and Gray Television 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 Nexxen International and Gray Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexxen International and Gray Television, you can compare the effects of market volatilities on Nexxen International and Gray Television 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 Nexxen International with a short position of Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexxen International and Gray Television.

Diversification Opportunities for Nexxen International and Gray Television

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Nexxen and Gray is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nexxen International and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television and Nexxen International 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 Nexxen International are associated (or correlated) with Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Nexxen International i.e., Nexxen International and Gray Television go up and down completely randomly.

Pair Corralation between Nexxen International and Gray Television

Given the investment horizon of 90 days Nexxen International is expected to under-perform the Gray Television. In addition to that, Nexxen International is 1.45 times more volatile than Gray Television. It trades about -0.15 of its total potential returns per unit of risk. Gray Television is currently generating about 0.18 per unit of volatility. If you would invest  491.00  in Gray Television on September 13, 2025 and sell it today you would earn a total of  62.00  from holding Gray Television or generate 12.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Nexxen International  vs.  Gray Television

 Performance 
       Timeline  
Nexxen International 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Nexxen International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.
Gray Television 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Gray Television has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Gray Television is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Nexxen International and Gray Television Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nexxen International and Gray Television

The main advantage of trading using opposite Nexxen International and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexxen International position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.
The idea behind Nexxen International and Gray Television 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.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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