Correlation Between Casa Systems and Telesat Corp
Can any of the company-specific risk be diversified away by investing in both Casa Systems and Telesat Corp 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 Casa Systems and Telesat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casa Systems and Telesat Corp, you can compare the effects of market volatilities on Casa Systems and Telesat Corp 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 Casa Systems with a short position of Telesat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casa Systems and Telesat Corp.
Diversification Opportunities for Casa Systems and Telesat Corp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Casa and Telesat is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Casa Systems and Telesat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telesat Corp and Casa Systems 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 Casa Systems are associated (or correlated) with Telesat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telesat Corp has no effect on the direction of Casa Systems i.e., Casa Systems and Telesat Corp go up and down completely randomly.
Pair Corralation between Casa Systems and Telesat Corp
If you would invest 111.00 in Casa Systems on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Casa Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Casa Systems vs. Telesat Corp
Performance |
| Timeline |
| Casa Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Telesat Corp |
Casa Systems and Telesat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casa Systems and Telesat Corp
The main advantage of trading using opposite Casa Systems and Telesat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casa Systems position performs unexpectedly, Telesat Corp 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 Telesat Corp will offset losses from the drop in Telesat Corp's long position.| Casa Systems vs. ADTRAN Inc | Casa Systems vs. Comtech Telecommunications Corp | Casa Systems vs. Digi International | Casa Systems vs. KVH Industries |
| Telesat Corp vs. KVH Industries | Telesat Corp vs. Comtech Telecommunications Corp | Telesat Corp vs. Knowles Cor | Telesat Corp vs. Ituran Location and |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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