Correlation Between Tegna and Link Real
Can any of the company-specific risk be diversified away by investing in both Tegna and Link Real 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 Link Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and Link Real Estate, you can compare the effects of market volatilities on Tegna and Link Real 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 Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and Link Real.
Diversification Opportunities for Tegna and Link Real
Pay attention - limited upside
The 3 months correlation between Tegna and Link is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate 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 Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of Tegna i.e., Tegna and Link Real go up and down completely randomly.
Pair Corralation between Tegna and Link Real
Given the investment horizon of 90 days Tegna Inc is expected to generate 0.5 times more return on investment than Link Real. However, Tegna Inc is 2.02 times less risky than Link Real. It trades about 0.05 of its potential returns per unit of risk. Link Real Estate is currently generating about -0.03 per unit of risk. If you would invest 1,485 in Tegna Inc on November 9, 2024 and sell it today you would earn a total of 328.00 from holding Tegna Inc or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 32.58% |
| Values | Daily Returns |
Tegna Inc vs. Link Real Estate
Performance |
| Timeline |
| Tegna Inc |
| Link Real Estate |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Tegna and Link Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and Link Real
The main advantage of trading using opposite Tegna and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |