Correlation Between TuanChe ADR and Tegna
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR 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 TuanChe ADR and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and Tegna Inc, you can compare the effects of market volatilities on TuanChe ADR 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 TuanChe ADR with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and Tegna.
Diversification Opportunities for TuanChe ADR and Tegna
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TuanChe and Tegna is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and TuanChe ADR 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 TuanChe ADR 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 TuanChe ADR i.e., TuanChe ADR and Tegna go up and down completely randomly.
Pair Corralation between TuanChe ADR and Tegna
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the Tegna. In addition to that, TuanChe ADR is 2.11 times more volatile than Tegna Inc. It trades about -0.32 of its total potential returns per unit of risk. Tegna Inc is currently generating about 0.19 per unit of volatility. If you would invest 1,650 in Tegna Inc on August 27, 2024 and sell it today you would earn a total of 221.00 from holding Tegna Inc or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. Tegna Inc
Performance |
| Timeline |
| TuanChe ADR |
| Tegna Inc |
TuanChe ADR and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and Tegna
The main advantage of trading using opposite TuanChe ADR and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR 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.| TuanChe ADR vs. Onfolio Holdings | TuanChe ADR vs. Starbox Group Holdings | TuanChe ADR vs. MediaAlpha | TuanChe ADR vs. Metalpha Technology Holding |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |