Correlation Between Pampa Energia and Cablevision Holding
Can any of the company-specific risk be diversified away by investing in both Pampa Energia 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 Pampa Energia and Cablevision Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pampa Energia SA and Cablevision Holding SA, you can compare the effects of market volatilities on Pampa Energia 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 Pampa Energia with a short position of Cablevision Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pampa Energia and Cablevision Holding.
Diversification Opportunities for Pampa Energia and Cablevision Holding
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pampa and Cablevision is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pampa Energia 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 Pampa Energia 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 Pampa Energia 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 Pampa Energia i.e., Pampa Energia and Cablevision Holding go up and down completely randomly.
Pair Corralation between Pampa Energia and Cablevision Holding
Assuming the 90 days trading horizon Pampa Energia is expected to generate 1.13 times less return on investment than Cablevision Holding. But when comparing it to its historical volatility, Pampa Energia SA is 1.0 times less risky than Cablevision Holding. It trades about 0.18 of its potential returns per unit of risk. Cablevision Holding SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 488,000 in Cablevision Holding SA on November 2, 2024 and sell it today you would earn a total of 280,000 from holding Cablevision Holding SA or generate 57.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pampa Energia SA vs. Cablevision Holding SA
Performance |
| Timeline |
| Pampa Energia SA |
| Cablevision Holding |
Pampa Energia and Cablevision Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pampa Energia and Cablevision Holding
The main advantage of trading using opposite Pampa Energia and Cablevision Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pampa Energia 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.| Pampa Energia vs. Transportadora de Gas | Pampa Energia vs. Compania de Transporte | Pampa Energia vs. United States Steel | Pampa Energia vs. Harmony Gold Mining |
| Cablevision Holding vs. Telecom Argentina | Cablevision Holding vs. Boldt SA | Cablevision Holding vs. Agrometal SAI | Cablevision Holding 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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