Correlation Between TEGNA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both TEGNA and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEGNA Inc and Dow Jones Industrial, you can compare the effects of market volatilities on TEGNA and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEGNA and Dow Jones.
Diversification Opportunities for TEGNA and Dow Jones
Almost no diversification
The 3 months correlation between TEGNA and Dow is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding TEGNA Inc and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of TEGNA i.e., TEGNA and Dow Jones go up and down completely randomly.
Pair Corralation between TEGNA and Dow Jones
Assuming the 90 days horizon TEGNA is expected to generate 3.07 times less return on investment than Dow Jones. In addition to that, TEGNA is 2.88 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of volatility. If you would invest 3,302,749 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 1,122,034 from holding Dow Jones Industrial or generate 33.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.02% |
| Values | Daily Returns |
TEGNA Inc vs. Dow Jones Industrial
Performance |
| Timeline |
TEGNA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
TEGNA Inc
Pair trading matchups for TEGNA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with TEGNA and Dow Jones
The main advantage of trading using opposite TEGNA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEGNA position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| TEGNA vs. Superior Plus Corp | TEGNA vs. SIVERS SEMICONDUCTORS AB | TEGNA vs. Norsk Hydro ASA | TEGNA vs. Reliance Steel Aluminum |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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