Correlation Between ABB and TEGNA
Can any of the company-specific risk be diversified away by investing in both ABB 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 ABB and TEGNA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABB and TEGNA Inc, you can compare the effects of market volatilities on ABB 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 ABB with a short position of TEGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABB and TEGNA.
Diversification Opportunities for ABB and TEGNA
Excellent diversification
The 3 months correlation between ABB and TEGNA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ABB and TEGNA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEGNA Inc and ABB 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 ABB 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 ABB i.e., ABB and TEGNA go up and down completely randomly.
Pair Corralation between ABB and TEGNA
Assuming the 90 days trading horizon ABB is expected to generate 1.63 times more return on investment than TEGNA. However, ABB is 1.63 times more volatile than TEGNA Inc. It trades about 0.07 of its potential returns per unit of risk. TEGNA Inc is currently generating about -0.1 per unit of risk. If you would invest 5,680 in ABB on September 1, 2025 and sell it today you would earn a total of 400.00 from holding ABB or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABB vs. TEGNA Inc
Performance |
| Timeline |
| ABB |
| TEGNA Inc |
ABB and TEGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABB and TEGNA
The main advantage of trading using opposite ABB and TEGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABB 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.| ABB vs. The Boston Beer | ABB vs. National Health Investors | ABB vs. BOSTON BEER A | ABB vs. MPH Health Care |
| TEGNA vs. AXWAY SOFTWARE EO | TEGNA vs. Beta Systems Software | TEGNA vs. FORMPIPE SOFTWARE AB | TEGNA vs. PDS Biotechnology Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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