Correlation Between Tegna and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Tegna and BIT Mining 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 BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and BIT Mining, you can compare the effects of market volatilities on Tegna and BIT Mining 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 BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and BIT Mining.
Diversification Opportunities for Tegna and BIT Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tegna and BIT is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining 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 BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Tegna i.e., Tegna and BIT Mining go up and down completely randomly.
Pair Corralation between Tegna and BIT Mining
Given the investment horizon of 90 days Tegna Inc is expected to generate 0.3 times more return on investment than BIT Mining. However, Tegna Inc is 3.35 times less risky than BIT Mining. It trades about -0.14 of its potential returns per unit of risk. BIT Mining is currently generating about -0.08 per unit of risk. If you would invest 1,879 in Tegna Inc on November 4, 2024 and sell it today you would lose (57.00) from holding Tegna Inc or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tegna Inc vs. BIT Mining
Performance |
| Timeline |
| Tegna Inc |
| BIT Mining |
Tegna and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and BIT Mining
The main advantage of trading using opposite Tegna and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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