Correlation Between Nexstar Media and BG Foods
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and BG Foods 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 Nexstar Media and BG Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Media Group and BG Foods, you can compare the effects of market volatilities on Nexstar Media and BG Foods 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 Nexstar Media with a short position of BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and BG Foods.
Diversification Opportunities for Nexstar Media and BG Foods
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and DHR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods and Nexstar 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 Nexstar Media Group are associated (or correlated) with BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Nexstar Media i.e., Nexstar Media and BG Foods go up and down completely randomly.
Pair Corralation between Nexstar Media and BG Foods
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the BG Foods. But the stock apears to be less risky and, when comparing its historical volatility, Nexstar Media Group is 1.65 times less risky than BG Foods. The stock trades about -0.05 of its potential returns per unit of risk. The BG Foods is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 379.00 in BG Foods on September 5, 2025 and sell it today you would earn a total of 22.00 from holding BG Foods or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. BG Foods
Performance |
| Timeline |
| Nexstar Media Group |
| BG Foods |
Nexstar Media and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and BG Foods
The main advantage of trading using opposite Nexstar Media and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, BG Foods 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 BG Foods will offset losses from the drop in BG Foods' long position.| Nexstar Media vs. REGAL ASIAN INVESTMENTS | Nexstar Media vs. HK Electric Investments | Nexstar Media vs. PennyMac Mortgage Investment | Nexstar Media vs. AGNC INVESTMENT |
| BG Foods vs. Nestl SA | BG Foods vs. Kraft Heinz Co | BG Foods vs. General Mills | BG Foods vs. General Mills |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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