Correlation Between Beta Systems and TEGNA
Can any of the company-specific risk be diversified away by investing in both Beta Systems 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 Beta Systems and TEGNA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beta Systems Software and TEGNA Inc, you can compare the effects of market volatilities on Beta Systems 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 Beta Systems with a short position of TEGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beta Systems and TEGNA.
Diversification Opportunities for Beta Systems and TEGNA
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beta and TEGNA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Beta Systems Software and TEGNA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEGNA Inc and Beta Systems 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 Beta Systems Software 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 Beta Systems i.e., Beta Systems and TEGNA go up and down completely randomly.
Pair Corralation between Beta Systems and TEGNA
Assuming the 90 days trading horizon Beta Systems Software is expected to generate 3.71 times more return on investment than TEGNA. However, Beta Systems is 3.71 times more volatile than TEGNA Inc. It trades about 0.04 of its potential returns per unit of risk. TEGNA Inc is currently generating about -0.11 per unit of risk. If you would invest 1,670 in Beta Systems Software on September 2, 2025 and sell it today you would earn a total of 70.00 from holding Beta Systems Software or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beta Systems Software vs. TEGNA Inc
Performance |
| Timeline |
| Beta Systems Software |
| TEGNA Inc |
Beta Systems and TEGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beta Systems and TEGNA
The main advantage of trading using opposite Beta Systems and TEGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beta Systems 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.| Beta Systems vs. SALESFORCE INC CDR | Beta Systems vs. China Communications Services | Beta Systems vs. GungHo Online Entertainment | Beta Systems vs. Chunghwa Telecom Co |
| TEGNA vs. Beijing Media | TEGNA vs. Columbia Sportswear | TEGNA vs. Atresmedia Corporacin de | TEGNA vs. Southern Cross Media |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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