Correlation Between Tegna and Now
Can any of the company-specific risk be diversified away by investing in both Tegna and Now 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 Now into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and Now Inc, you can compare the effects of market volatilities on Tegna and Now 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 Now. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and Now.
Diversification Opportunities for Tegna and Now
Poor diversification
The 3 months correlation between Tegna and Now is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Now Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Now Inc 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 Now. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Now Inc has no effect on the direction of Tegna i.e., Tegna and Now go up and down completely randomly.
Pair Corralation between Tegna and Now
Given the investment horizon of 90 days Tegna is expected to generate 2.77 times less return on investment than Now. But when comparing it to its historical volatility, Tegna Inc is 1.24 times less risky than Now. It trades about 0.01 of its potential returns per unit of risk. Now Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,466 in Now Inc on November 4, 2024 and sell it today you would earn a total of 22.00 from holding Now Inc or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tegna Inc vs. Now Inc
Performance |
| Timeline |
| Tegna Inc |
| Now Inc |
Tegna and Now Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and Now
The main advantage of trading using opposite Tegna and Now positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Now 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 Now will offset losses from the drop in Now's long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |