Correlation Between Edesa Holding and Cablevision Holding
Can any of the company-specific risk be diversified away by investing in both Edesa Holding and Cablevision Holding 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 Edesa Holding and Cablevision Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edesa Holding SA and Cablevision Holding SA, you can compare the effects of market volatilities on Edesa Holding and Cablevision Holding 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 Edesa Holding with a short position of Cablevision Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Cablevision Holding.
Diversification Opportunities for Edesa Holding and Cablevision Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Cablevision is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA and Cablevision Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cablevision Holding and Edesa 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 Edesa Holding SA are associated (or correlated) with Cablevision Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cablevision Holding has no effect on the direction of Edesa Holding i.e., Edesa Holding and Cablevision Holding go up and down completely randomly.
Pair Corralation between Edesa Holding and Cablevision Holding
Assuming the 90 days trading horizon Edesa Holding is expected to generate 19.27 times less return on investment than Cablevision Holding. But when comparing it to its historical volatility, Edesa Holding SA is 9.33 times less risky than Cablevision Holding. It trades about 0.06 of its potential returns per unit of risk. Cablevision Holding SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 335,500 in Cablevision Holding SA on September 12, 2024 and sell it today you would earn a total of 371,500 from holding Cablevision Holding SA or generate 110.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Edesa Holding SA vs. Cablevision Holding SA
Performance |
| Timeline |
| Edesa Holding SA |
| Cablevision Holding |
Edesa Holding and Cablevision Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Cablevision Holding
The main advantage of trading using opposite Edesa Holding and Cablevision Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding position performs unexpectedly, Cablevision Holding 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 Cablevision Holding will offset losses from the drop in Cablevision Holding's long position.| Edesa Holding vs. Enel Generacion Costanera | Edesa Holding vs. Vista Energy, SAB | Edesa Holding vs. United States Steel | Edesa Holding vs. Pfizer Inc |
| Cablevision Holding vs. Grupo Televisa SAB | Cablevision Holding vs. Telecom Argentina | Cablevision Holding vs. Edesa Holding SA | Cablevision Holding vs. Vista Energy, SAB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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