Correlation Between Tegna and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Tegna and Coronado Global 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 Coronado Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and Coronado Global Resources, you can compare the effects of market volatilities on Tegna and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and Coronado Global.
Diversification Opportunities for Tegna and Coronado Global
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tegna and Coronado is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Tegna i.e., Tegna and Coronado Global go up and down completely randomly.
Pair Corralation between Tegna and Coronado Global
Given the investment horizon of 90 days Tegna Inc is expected to generate 0.46 times more return on investment than Coronado Global. However, Tegna Inc is 2.18 times less risky than Coronado Global. It trades about -0.14 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.16 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 Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Tegna Inc vs. Coronado Global Resources
Performance |
| Timeline |
| Tegna Inc |
| Coronado Global Resources |
Tegna and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and Coronado Global
The main advantage of trading using opposite Tegna and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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