Correlation Between TEGNA and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both TEGNA and AIR PRODCHEMICALS 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 TEGNA and AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEGNA Inc and AIR PRODCHEMICALS, you can compare the effects of market volatilities on TEGNA and AIR PRODCHEMICALS 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 TEGNA with a short position of AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEGNA and AIR PRODCHEMICALS.
Diversification Opportunities for TEGNA and AIR PRODCHEMICALS
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TEGNA and AIR is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding TEGNA Inc and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS and TEGNA 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 TEGNA Inc are associated (or correlated) with AIR PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of TEGNA i.e., TEGNA and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between TEGNA and AIR PRODCHEMICALS
Assuming the 90 days horizon TEGNA is expected to generate 3.42 times less return on investment than AIR PRODCHEMICALS. In addition to that, TEGNA is 1.41 times more volatile than AIR PRODCHEMICALS. It trades about 0.03 of its total potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.13 per unit of volatility. If you would invest 29,180 in AIR PRODCHEMICALS on September 12, 2024 and sell it today you would earn a total of 900.00 from holding AIR PRODCHEMICALS or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEGNA Inc vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| TEGNA Inc |
| AIR PRODCHEMICALS |
TEGNA and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEGNA and AIR PRODCHEMICALS
The main advantage of trading using opposite TEGNA and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEGNA position performs unexpectedly, AIR PRODCHEMICALS 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 AIR PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS's long position.| TEGNA vs. Superior Plus Corp | TEGNA vs. SIVERS SEMICONDUCTORS AB | TEGNA vs. Norsk Hydro ASA | TEGNA vs. Reliance Steel Aluminum |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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