Correlation Between Television Broadcasts and Tegna
Can any of the company-specific risk be diversified away by investing in both Television Broadcasts and Tegna 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 Television Broadcasts and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Television Broadcasts and Tegna Inc, you can compare the effects of market volatilities on Television Broadcasts and Tegna 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 Television Broadcasts with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Television Broadcasts and Tegna.
Diversification Opportunities for Television Broadcasts and Tegna
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Television and Tegna is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Television Broadcasts and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Television Broadcasts 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 Television Broadcasts are associated (or correlated) with Tegna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tegna Inc has no effect on the direction of Television Broadcasts i.e., Television Broadcasts and Tegna go up and down completely randomly.
Pair Corralation between Television Broadcasts and Tegna
Assuming the 90 days horizon Television Broadcasts is expected to generate 1.14 times more return on investment than Tegna. However, Television Broadcasts is 1.14 times more volatile than Tegna Inc. It trades about 0.06 of its potential returns per unit of risk. Tegna Inc is currently generating about -0.13 per unit of risk. If you would invest 73.00 in Television Broadcasts on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Television Broadcasts or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Television Broadcasts vs. Tegna Inc
Performance |
| Timeline |
| Television Broadcasts |
| Tegna Inc |
Television Broadcasts and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Television Broadcasts and Tegna
The main advantage of trading using opposite Television Broadcasts and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Television Broadcasts position performs unexpectedly, Tegna 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 Tegna will offset losses from the drop in Tegna's long position.| Television Broadcasts vs. Fubotv Inc | Television Broadcasts vs. Saga Communications | Television Broadcasts vs. Cumulus Media Class | Television Broadcasts vs. Curiositystream |
| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media Class |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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