Correlation Between Cable One and Seaboard
Can any of the company-specific risk be diversified away by investing in both Cable One and Seaboard 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 Seaboard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and Seaboard, you can compare the effects of market volatilities on Cable One and Seaboard 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 Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and Seaboard.
Diversification Opportunities for Cable One and Seaboard
Average diversification
The 3 months correlation between Cable and Seaboard is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard 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 Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of Cable One i.e., Cable One and Seaboard go up and down completely randomly.
Pair Corralation between Cable One and Seaboard
Given the investment horizon of 90 days Cable One is expected to under-perform the Seaboard. In addition to that, Cable One is 2.53 times more volatile than Seaboard. It trades about -0.28 of its total potential returns per unit of risk. Seaboard is currently generating about 0.03 per unit of volatility. If you would invest 242,966 in Seaboard on November 1, 2024 and sell it today you would earn a total of 1,610 from holding Seaboard or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cable One vs. Seaboard
Performance |
| Timeline |
| Cable One |
| Seaboard |
Cable One and Seaboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cable One and Seaboard
The main advantage of trading using opposite Cable One and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard'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 |
| Seaboard vs. White Mountains Insurance | Seaboard vs. Cable One | Seaboard vs. NVR Inc | Seaboard vs. Alexanders |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |