Correlation Between Gray Television and Tegna
Can any of the company-specific risk be diversified away by investing in both Gray Television 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 Gray Television and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gray Television and Tegna Inc, you can compare the effects of market volatilities on Gray Television 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 Gray Television with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Tegna.
Diversification Opportunities for Gray Television and Tegna
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gray and Tegna is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Gray Television 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 Gray Television 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 Gray Television i.e., Gray Television and Tegna go up and down completely randomly.
Pair Corralation between Gray Television and Tegna
Assuming the 90 days horizon Gray Television is expected to generate 4.56 times more return on investment than Tegna. However, Gray Television is 4.56 times more volatile than Tegna Inc. It trades about 0.08 of its potential returns per unit of risk. Tegna Inc is currently generating about 0.08 per unit of risk. If you would invest 695.00 in Gray Television on February 14, 2024 and sell it today you would earn a total of 105.00 from holding Gray Television or generate 15.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gray Television vs. Tegna Inc
Performance |
Timeline |
Gray Television |
Tegna Inc |
Gray Television and Tegna Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gray Television and Tegna
The main advantage of trading using opposite Gray Television and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television 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.Gray Television vs. VinFast Auto Ltd | Gray Television vs. Korea Electric Power | Gray Television vs. Ecopetrol SA ADR | Gray Television vs. Grupo Aval |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |