Correlation Between Matson and Nexstar Broadcasting

Can any of the company-specific risk be diversified away by investing in both Matson and Nexstar Broadcasting 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 Matson and Nexstar Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Matson Inc and Nexstar Broadcasting Group, you can compare the effects of market volatilities on Matson and Nexstar Broadcasting 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 Matson with a short position of Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson and Nexstar Broadcasting.

Diversification Opportunities for Matson and Nexstar Broadcasting

-0.03

Correlation Coefficient

Matson  Nexstar Broadcasting

Good diversification

The 3 months correlation between Matson and Nexstar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Matson Inc and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting and Matson 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 Matson Inc are associated (or correlated) with Nexstar Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Broadcasting has no effect on the direction of Matson i.e., Matson and Nexstar Broadcasting go up and down completely randomly.

Pair Corralation between Matson and Nexstar Broadcasting

Given the investment horizon of 90 days Matson Inc is expected to generate 1.49 times more return on investment than Nexstar Broadcasting. However, Matson is 1.49 times more volatile than Nexstar Broadcasting Group. It trades about 0.07 of its potential returns per unit of risk. Nexstar Broadcasting Group is currently generating about -0.06 per unit of risk. If you would invest  10,405  in Matson Inc on September 4, 2025 and sell it today you would earn a total of  1,064  from holding Matson Inc or generate 10.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Matson Inc  vs.  Nexstar Broadcasting Group

Matson Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Matson Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Matson may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Nexstar Broadcasting

Risk-Adjusted Performance

Weakest

Over the last 90 days Nexstar Broadcasting Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nexstar Broadcasting is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Matson and Nexstar Broadcasting

The main advantage of trading using opposite Matson and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson position performs unexpectedly, Nexstar Broadcasting 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 Nexstar Broadcasting will offset losses from the drop in Nexstar Broadcasting's long position.

The idea behind Matson Inc and Nexstar Broadcasting Group 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.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.