Correlation Between Credit Acceptance and Charter Communications
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and Charter Communications 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 Credit Acceptance and Charter Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Charter Communications, you can compare the effects of market volatilities on Credit Acceptance and Charter Communications 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 Credit Acceptance with a short position of Charter Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Charter Communications.
Diversification Opportunities for Credit Acceptance and Charter Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Charter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and Charter Communications go up and down completely randomly.
Pair Corralation between Credit Acceptance and Charter Communications
If you would invest 3,162 in Charter Communications on August 24, 2024 and sell it today you would earn a total of 573.00 from holding Charter Communications or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. Charter Communications
Performance |
| Timeline |
| Credit Acceptance |
| Charter Communications |
Credit Acceptance and Charter Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Charter Communications
The main advantage of trading using opposite Credit Acceptance and Charter Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, Charter Communications 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 Charter Communications will offset losses from the drop in Charter Communications' long position.| Credit Acceptance vs. Marvell Technology | Credit Acceptance vs. Take Two Interactive Software | Credit Acceptance vs. Uber Technologies | Credit Acceptance vs. Paycom Software |
| Charter Communications vs. Bemobi Mobile Tech | Charter Communications vs. BTG Pactual Logstica | Charter Communications vs. Plano Plano Desenvolvimento | Charter Communications vs. Companhia Habitasul de |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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