Correlation Between Emerald Expositions and Tegna
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions and Tegna 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 Emerald Expositions and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Tegna Inc, you can compare the effects of market volatilities on Emerald Expositions and Tegna 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 Emerald Expositions with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Tegna.
Diversification Opportunities for Emerald Expositions and Tegna
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerald and Tegna is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Emerald Expositions 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 Emerald Expositions Events are associated (or correlated) with Tegna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tegna Inc has no effect on the direction of Emerald Expositions i.e., Emerald Expositions and Tegna go up and down completely randomly.
Pair Corralation between Emerald Expositions and Tegna
Considering the 90-day investment horizon Emerald Expositions Events is expected to generate 1.72 times more return on investment than Tegna. However, Emerald Expositions is 1.72 times more volatile than Tegna Inc. It trades about 0.03 of its potential returns per unit of risk. Tegna Inc is currently generating about 0.01 per unit of risk. If you would invest 398.00 in Emerald Expositions Events on August 27, 2024 and sell it today you would earn a total of 108.00 from holding Emerald Expositions Events or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerald Expositions Events vs. Tegna Inc
Performance |
| Timeline |
| Emerald Expositions |
| Tegna Inc |
Emerald Expositions and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Expositions and Tegna
The main advantage of trading using opposite Emerald Expositions and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions position performs unexpectedly, Tegna 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 Tegna will offset losses from the drop in Tegna's long position.| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Marchex | Emerald Expositions vs. Innovid Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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