Correlation Between VOLVO B and TEGNA

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

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

Diversification Opportunities for VOLVO B and TEGNA

0.65

Correlation Coefficient

VOLVO B  TEGNA

Poor diversification

The 3 months correlation between VOLVO and TEGNA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding VOLVO B UNSPADR and TEGNA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEGNA Inc and VOLVO B 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 VOLVO B UNSPADR 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 VOLVO B i.e., VOLVO B and TEGNA go up and down completely randomly.

Pair Corralation between VOLVO B and TEGNA

Assuming the 90 days trading horizon VOLVO B is expected to generate 2.46 times less return on investment than TEGNA. In addition to that, VOLVO B is 1.23 times more volatile than TEGNA Inc. It trades about 0.03 of its total potential returns per unit of risk. TEGNA Inc is currently generating about 0.09 per unit of volatility. If you would invest  1,340  in TEGNA Inc on April 22, 2025 and sell it today you would earn a total of  120.00  from holding TEGNA Inc or generate 8.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

VOLVO B UNSPADR  vs.  TEGNA Inc

VOLVO B UNSPADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VOLVO B UNSPADR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, VOLVO B is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TEGNA Inc

Risk-Adjusted Performance

OK

Over the last 90 days TEGNA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, TEGNA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VOLVO B and TEGNA

The main advantage of trading using opposite VOLVO B and TEGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOLVO B 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 VOLVO B UNSPADR 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.