Correlation Between Cable One and Stagwell
Can any of the company-specific risk be diversified away by investing in both Cable One and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and Stagwell, you can compare the effects of market volatilities on Cable One and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and Stagwell.
Diversification Opportunities for Cable One and Stagwell
Almost no diversification
The 3 months correlation between Cable and Stagwell is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Cable One i.e., Cable One and Stagwell go up and down completely randomly.
Pair Corralation between Cable One and Stagwell
Given the investment horizon of 90 days Cable One is expected to under-perform the Stagwell. In addition to that, Cable One is 1.2 times more volatile than Stagwell. It trades about 0.0 of its total potential returns per unit of risk. Stagwell is currently generating about 0.05 per unit of volatility. If you would invest 618.00 in Stagwell on October 24, 2024 and sell it today you would earn a total of 35.00 from holding Stagwell or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cable One vs. Stagwell
Performance |
| Timeline |
| Cable One |
| Stagwell |
Cable One and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cable One and Stagwell
The main advantage of trading using opposite Cable One and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell'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 |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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