Correlation Between Tegna and Television Broadcasts
Can any of the company-specific risk be diversified away by investing in both Tegna and Television Broadcasts 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 Television Broadcasts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tegna Inc and Television Broadcasts, you can compare the effects of market volatilities on Tegna and Television Broadcasts 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 Television Broadcasts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tegna and Television Broadcasts.
Diversification Opportunities for Tegna and Television Broadcasts
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tegna and Television is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Television Broadcasts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Television Broadcasts 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 Television Broadcasts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Television Broadcasts has no effect on the direction of Tegna i.e., Tegna and Television Broadcasts go up and down completely randomly.
Pair Corralation between Tegna and Television Broadcasts
Given the investment horizon of 90 days Tegna Inc is expected to generate 0.57 times more return on investment than Television Broadcasts. However, Tegna Inc is 1.75 times less risky than Television Broadcasts. It trades about -0.15 of its potential returns per unit of risk. Television Broadcasts is currently generating about -0.28 per unit of risk. If you would invest 1,841 in Tegna Inc on October 23, 2024 and sell it today you would lose (59.00) from holding Tegna Inc or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tegna Inc vs. Television Broadcasts
Performance |
| Timeline |
| Tegna Inc |
| Television Broadcasts |
Tegna and Television Broadcasts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tegna and Television Broadcasts
The main advantage of trading using opposite Tegna and Television Broadcasts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Television Broadcasts 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 Television Broadcasts will offset losses from the drop in Television Broadcasts' long position.| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
| Television Broadcasts vs. Fubotv Inc | Television Broadcasts vs. Cumulus Media Class | Television Broadcasts vs. E W Scripps | Television Broadcasts vs. Gray Television |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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