Correlation Between Beasley Broadcast and Tegna

Can any of the company-specific risk be diversified away by investing in both Beasley Broadcast 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 Beasley Broadcast and Tegna into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beasley Broadcast Group and Tegna Inc, you can compare the effects of market volatilities on Beasley Broadcast 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 Beasley Broadcast with a short position of Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beasley Broadcast and Tegna.

Diversification Opportunities for Beasley Broadcast and Tegna

-0.04

Correlation Coefficient

Beasley Broadcast  Tegna

Good diversification

The 3 months correlation between Beasley and Tegna is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Beasley Broadcast Group and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc and Beasley Broadcast 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 Beasley Broadcast Group 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 Beasley Broadcast i.e., Beasley Broadcast and Tegna go up and down completely randomly.

Pair Corralation between Beasley Broadcast and Tegna

Given the investment horizon of 90 days Beasley Broadcast Group is expected to under-perform the Tegna. In addition to that, Beasley Broadcast is 1.89 times more volatile than Tegna Inc. It trades about -0.17 of its total potential returns per unit of risk. Tegna Inc is currently generating about 0.01 per unit of volatility. If you would invest  1,821  in Tegna Inc on December 28, 2024 and sell it today you would earn a total of  8.00  from holding Tegna Inc or generate 0.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beasley Broadcast Group  vs.  Tegna Inc

Beasley Broadcast

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beasley Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Tegna Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tegna Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Tegna is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Beasley Broadcast and Tegna

The main advantage of trading using opposite Beasley Broadcast and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beasley Broadcast 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.

The idea behind Beasley Broadcast Group and Tegna Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.