Correlation Between Urban One and Tegna
Can any of the company-specific risk be diversified away by investing in both Urban One 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 Urban One and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban One Class and Tegna Inc, you can compare the effects of market volatilities on Urban One 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 Urban One with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban One and Tegna.
Diversification Opportunities for Urban One and Tegna
Pay attention - limited upside
The 3 months correlation between Urban and Tegna is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Urban One Class and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Urban One 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 Urban One Class 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 Urban One i.e., Urban One and Tegna go up and down completely randomly.
Pair Corralation between Urban One and Tegna
Assuming the 90 days horizon Urban One Class is expected to under-perform the Tegna. In addition to that, Urban One is 1.19 times more volatile than Tegna Inc. It trades about -0.13 of its total potential returns per unit of risk. Tegna Inc is currently generating about 0.18 per unit of volatility. If you would invest 1,655 in Tegna Inc on August 30, 2024 and sell it today you would earn a total of 210.00 from holding Tegna Inc or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban One Class vs. Tegna Inc
Performance |
| Timeline |
| Urban One Class |
| Tegna Inc |
Urban One and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban One and Tegna
The main advantage of trading using opposite Urban One and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban One 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.| Urban One vs. Scienjoy Holding Corp | Urban One vs. Saga Communications | Urban One vs. Mediaco Holding | Urban One vs. iHeartMedia Class A |
| Tegna vs. News Corp B | Tegna vs. News Corp A | Tegna vs. Live Nation Entertainment | Tegna vs. Paramount Global 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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