Correlation Between S1YM34 and Cable One
Can any of the company-specific risk be diversified away by investing in both S1YM34 and Cable One 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 S1YM34 and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S1YM34 and Cable One, you can compare the effects of market volatilities on S1YM34 and Cable One 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 S1YM34 with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of S1YM34 and Cable One.
Diversification Opportunities for S1YM34 and Cable One
Almost no diversification
The 3 months correlation between S1YM34 and Cable is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding S1YM34 and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and S1YM34 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 S1YM34 are associated (or correlated) with Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of S1YM34 i.e., S1YM34 and Cable One go up and down completely randomly.
Pair Corralation between S1YM34 and Cable One
Assuming the 90 days trading horizon S1YM34 is expected to generate 0.84 times more return on investment than Cable One. However, S1YM34 is 1.18 times less risky than Cable One. It trades about 0.09 of its potential returns per unit of risk. Cable One is currently generating about -0.01 per unit of risk. If you would invest 11,340 in S1YM34 on September 25, 2024 and sell it today you would earn a total of 6,553 from holding S1YM34 or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 75.4% |
| Values | Daily Returns |
S1YM34 vs. Cable One
Performance |
| Timeline |
| S1YM34 |
| Cable One |
S1YM34 and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S1YM34 and Cable One
The main advantage of trading using opposite S1YM34 and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S1YM34 position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| S1YM34 vs. The Home Depot | S1YM34 vs. MAHLE Metal Leve | S1YM34 vs. Nordon Indstrias Metalrgicas | S1YM34 vs. Bemobi Mobile Tech |
| Cable One vs. Global X Funds | Cable One vs. Southwest Airlines Co | Cable One vs. TAL Education Group | Cable One vs. Hospital Mater Dei |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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