Correlation Between Consolidated Communications and LTC Properties
Can any of the company-specific risk be diversified away by investing in both Consolidated Communications and LTC Properties 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 Consolidated Communications and LTC Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consolidated Communications Holdings and LTC Properties, you can compare the effects of market volatilities on Consolidated Communications and LTC Properties 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 Consolidated Communications with a short position of LTC Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Communications and LTC Properties.
Diversification Opportunities for Consolidated Communications and LTC Properties
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Consolidated and LTC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Communications Ho and LTC Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LTC Properties and Consolidated Communications 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 Consolidated Communications Holdings are associated (or correlated) with LTC Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LTC Properties has no effect on the direction of Consolidated Communications i.e., Consolidated Communications and LTC Properties go up and down completely randomly.
Pair Corralation between Consolidated Communications and LTC Properties
Assuming the 90 days horizon Consolidated Communications Holdings is expected to generate 2.02 times more return on investment than LTC Properties. However, Consolidated Communications is 2.02 times more volatile than LTC Properties. It trades about 0.02 of its potential returns per unit of risk. LTC Properties is currently generating about 0.03 per unit of risk. If you would invest 398.00 in Consolidated Communications Holdings on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Consolidated Communications Holdings or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consolidated Communications Ho vs. LTC Properties
Performance |
| Timeline |
| Consolidated Communications |
| LTC Properties |
Consolidated Communications and LTC Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Communications and LTC Properties
The main advantage of trading using opposite Consolidated Communications and LTC Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Communications position performs unexpectedly, LTC Properties 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 LTC Properties will offset losses from the drop in LTC Properties' long position.| Consolidated Communications vs. T Mobile | Consolidated Communications vs. China Mobile Limited | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. Nippon Telegraph and |
| LTC Properties vs. Welltower | LTC Properties vs. Medical Properties Trust | LTC Properties vs. Sabra Health Care | LTC Properties vs. National Health Investors |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |