Correlation Between Cablevision Holding and IRSA Inversiones
Can any of the company-specific risk be diversified away by investing in both Cablevision Holding and IRSA Inversiones 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 Cablevision Holding and IRSA Inversiones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cablevision Holding SA and IRSA Inversiones y, you can compare the effects of market volatilities on Cablevision Holding and IRSA Inversiones 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 Cablevision Holding with a short position of IRSA Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cablevision Holding and IRSA Inversiones.
Diversification Opportunities for Cablevision Holding and IRSA Inversiones
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cablevision and IRSA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cablevision Holding SA and IRSA Inversiones y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Inversiones y and Cablevision Holding 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 Cablevision Holding SA are associated (or correlated) with IRSA Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Inversiones y has no effect on the direction of Cablevision Holding i.e., Cablevision Holding and IRSA Inversiones go up and down completely randomly.
Pair Corralation between Cablevision Holding and IRSA Inversiones
Assuming the 90 days trading horizon Cablevision Holding SA is expected to generate 1.03 times more return on investment than IRSA Inversiones. However, Cablevision Holding is 1.03 times more volatile than IRSA Inversiones y. It trades about 0.09 of its potential returns per unit of risk. IRSA Inversiones y is currently generating about -0.02 per unit of risk. If you would invest 734,000 in Cablevision Holding SA on November 2, 2024 and sell it today you would earn a total of 34,000 from holding Cablevision Holding SA or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cablevision Holding SA vs. IRSA Inversiones y
Performance |
| Timeline |
| Cablevision Holding |
| IRSA Inversiones y |
Cablevision Holding and IRSA Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cablevision Holding and IRSA Inversiones
The main advantage of trading using opposite Cablevision Holding and IRSA Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cablevision Holding position performs unexpectedly, IRSA Inversiones 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 IRSA Inversiones will offset losses from the drop in IRSA Inversiones' long position.| Cablevision Holding vs. Harmony Gold Mining | Cablevision Holding vs. Compania de Transporte | Cablevision Holding vs. United States Steel | Cablevision Holding vs. Transportadora de Gas |
| IRSA Inversiones vs. Agrometal SAI | IRSA Inversiones vs. Harmony Gold Mining | IRSA Inversiones vs. Telecom Argentina | IRSA Inversiones vs. United States Steel |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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