Correlation Between Nexstar Media and TEGNA
Can any of the company-specific risk be diversified away by investing in both Nexstar Media 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 Nexstar Media and TEGNA 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 TEGNA Inc, you can compare the effects of market volatilities on Nexstar Media 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 Nexstar Media with a short position of TEGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and TEGNA.
Diversification Opportunities for Nexstar Media and TEGNA
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexstar and TEGNA is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and TEGNA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEGNA Inc 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 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 Nexstar Media i.e., Nexstar Media and TEGNA go up and down completely randomly.
Pair Corralation between Nexstar Media and TEGNA
Assuming the 90 days horizon Nexstar Media is expected to generate 13.24 times less return on investment than TEGNA. But when comparing it to its historical volatility, Nexstar Media Group is 1.42 times less risky than TEGNA. It trades about 0.03 of its potential returns per unit of risk. TEGNA Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,490 in TEGNA Inc on September 3, 2024 and sell it today you would earn a total of 280.00 from holding TEGNA Inc or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. TEGNA Inc
Performance |
| Timeline |
| Nexstar Media Group |
| TEGNA Inc |
Nexstar Media and TEGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and TEGNA
The main advantage of trading using opposite Nexstar Media and TEGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media 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.| Nexstar Media vs. Sunstone Hotel Investors | Nexstar Media vs. VIAPLAY GROUP AB | Nexstar Media vs. ARISTOCRAT LEISURE | Nexstar Media vs. HYATT HOTELS A |
| TEGNA vs. News Corporation | TEGNA vs. News Corporation | TEGNA vs. Superior Plus Corp | TEGNA vs. NMI Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |