Correlation Between Tegna and Scienjoy Holding

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

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

Diversification Opportunities for Tegna and Scienjoy Holding

0.13

Correlation Coefficient

Tegna  Scienjoy Holding

Average diversification

The 3 months correlation between Tegna and Scienjoy is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tegna Inc and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding Corp and Tegna 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 Tegna Inc are associated (or correlated) with Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of Tegna i.e., Tegna and Scienjoy Holding go up and down completely randomly.

Pair Corralation between Tegna and Scienjoy Holding

Given the investment horizon of 90 days Tegna Inc is expected to generate 0.41 times more return on investment than Scienjoy Holding. However, Tegna Inc is 2.43 times less risky than Scienjoy Holding. It trades about 0.22 of its potential returns per unit of risk. Scienjoy Holding Corp is currently generating about 0.02 per unit of risk. If you would invest  1,388  in Tegna Inc on September 3, 2024 and sell it today you would earn a total of  489.00  from holding Tegna Inc or generate 35.23% return on investment over 90 days.

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

Tegna Inc  vs.  Scienjoy Holding Corp

Tegna Inc

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tegna Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Tegna sustained solid returns over the last few months and may actually be approaching a breakup point.

Scienjoy Holding Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scienjoy Holding Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady forward-looking indicators, Scienjoy Holding is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Tegna and Scienjoy Holding

The main advantage of trading using opposite Tegna and Scienjoy Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tegna position performs unexpectedly, Scienjoy Holding 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 Scienjoy Holding will offset losses from the drop in Scienjoy Holding's long position.

The idea behind Tegna Inc and Scienjoy Holding Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.