Correlation Between Tegna and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Tegna and Bitmine Immersion 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 Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Tegna and Bitmine Immersion 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 Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and Bitmine Immersion.
Diversification Opportunities for Tegna and Bitmine Immersion
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tegna and Bitmine is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion 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 Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Tegna i.e., Tegna and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Tegna and Bitmine Immersion
Given the investment horizon of 90 days Tegna Inc is expected to generate 0.13 times more return on investment than Bitmine Immersion. However, Tegna Inc is 7.99 times less risky than Bitmine Immersion. It trades about -0.2 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about -0.12 per unit of risk. If you would invest 1,855 in Tegna Inc on October 26, 2024 and sell it today you would lose (76.00) from holding Tegna Inc or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tegna Inc vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Tegna Inc |
| Bitmine Immersion |
Tegna and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and Bitmine Immersion
The main advantage of trading using opposite Tegna and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
| Bitmine Immersion vs. Cytta Corp | Bitmine Immersion vs. Mawson Infrastructure Group | Bitmine Immersion vs. World Technology Corp | Bitmine Immersion vs. Bagger Daves Burger |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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