Correlation Between Oracle and Tegna
Can any of the company-specific risk be diversified away by investing in both Oracle 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 Oracle and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Tegna Inc, you can compare the effects of market volatilities on Oracle 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 Oracle with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Tegna.
Diversification Opportunities for Oracle and Tegna
Modest diversification
The 3 months correlation between Oracle and Tegna is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Oracle 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 Oracle 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 Oracle i.e., Oracle and Tegna go up and down completely randomly.
Pair Corralation between Oracle and Tegna
Given the investment horizon of 90 days Oracle is expected to generate 2.15 times more return on investment than Tegna. However, Oracle is 2.15 times more volatile than Tegna Inc. It trades about 0.18 of its potential returns per unit of risk. Tegna Inc is currently generating about -0.05 per unit of risk. If you would invest 17,097 in Oracle on October 25, 2024 and sell it today you would earn a total of 1,550 from holding Oracle or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Tegna Inc
Performance |
| Timeline |
| Oracle |
| Tegna Inc |
Oracle and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Tegna
The main advantage of trading using opposite Oracle and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle 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.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. BLOCK INC |
| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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