Correlation Between AST SpaceMobile and Cable One
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Cable One 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 AST SpaceMobile and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and Cable One, you can compare the effects of market volatilities on AST SpaceMobile and Cable One 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 AST SpaceMobile with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Cable One.
Diversification Opportunities for AST SpaceMobile and Cable One
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AST and Cable is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and AST SpaceMobile 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 AST SpaceMobile are associated (or correlated) with Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Cable One go up and down completely randomly.
Pair Corralation between AST SpaceMobile and Cable One
If you would invest 33,689 in Cable One on August 31, 2024 and sell it today you would earn a total of 8,268 from holding Cable One or generate 24.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
AST SpaceMobile vs. Cable One
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cable One |
AST SpaceMobile and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and Cable One
The main advantage of trading using opposite AST SpaceMobile and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| AST SpaceMobile vs. Origin Materials Warrant | AST SpaceMobile vs. Ast Spacemobile | AST SpaceMobile vs. Paysafe Ltd Wt | AST SpaceMobile vs. EVgo Equity Warrants |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Liberty Broadband Corp | Cable One vs. Telkom Indonesia Tbk | Cable One vs. Liberty Global PLC |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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