Correlation Between Cable One and Anterix
Can any of the company-specific risk be diversified away by investing in both Cable One and Anterix 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 Cable One and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and Anterix, you can compare the effects of market volatilities on Cable One and Anterix 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 Cable One with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and Anterix.
Diversification Opportunities for Cable One and Anterix
Poor diversification
The 3 months correlation between Cable and Anterix is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Cable One 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 Cable One are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Cable One i.e., Cable One and Anterix go up and down completely randomly.
Pair Corralation between Cable One and Anterix
Given the investment horizon of 90 days Cable One is expected to under-perform the Anterix. But the stock apears to be less risky and, when comparing its historical volatility, Cable One is 1.01 times less risky than Anterix. The stock trades about -0.29 of its potential returns per unit of risk. The Anterix is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 3,005 in Anterix on November 3, 2024 and sell it today you would lose (148.00) from holding Anterix or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cable One vs. Anterix
Performance |
| Timeline |
| Cable One |
| Anterix |
Cable One and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cable One and Anterix
The main advantage of trading using opposite Cable One and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Cable One vs. Liberty Broadband Srs | Cable One vs. Liberty Broadband Corp | Cable One vs. Telkom Indonesia Tbk | Cable One vs. Liberty Global PLC |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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