Correlation Between CABLEVISION and CenterPoint Energy
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By analyzing existing cross correlation between CABLEVISION LIGHTPATH LLC and CenterPoint Energy, you can compare the effects of market volatilities on CABLEVISION and CenterPoint Energy 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 with a short position of CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CABLEVISION and CenterPoint Energy.
Diversification Opportunities for CABLEVISION and CenterPoint Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CABLEVISION and CenterPoint is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CABLEVISION LIGHTPATH LLC and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy and CABLEVISION 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 LIGHTPATH LLC are associated (or correlated) with CenterPoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CenterPoint Energy has no effect on the direction of CABLEVISION i.e., CABLEVISION and CenterPoint Energy go up and down completely randomly.
Pair Corralation between CABLEVISION and CenterPoint Energy
Assuming the 90 days trading horizon CABLEVISION LIGHTPATH LLC is expected to generate 1.44 times more return on investment than CenterPoint Energy. However, CABLEVISION is 1.44 times more volatile than CenterPoint Energy. It trades about 0.04 of its potential returns per unit of risk. CenterPoint Energy is currently generating about 0.05 per unit of risk. If you would invest 7,500 in CABLEVISION LIGHTPATH LLC on September 3, 2024 and sell it today you would earn a total of 736.00 from holding CABLEVISION LIGHTPATH LLC or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.68% |
| Values | Daily Returns |
CABLEVISION LIGHTPATH LLC vs. CenterPoint Energy
Performance |
| Timeline |
| CABLEVISION LIGHTPATH LLC |
| CenterPoint Energy |
CABLEVISION and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CABLEVISION and CenterPoint Energy
The main advantage of trading using opposite CABLEVISION and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CABLEVISION position performs unexpectedly, CenterPoint Energy 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 CenterPoint Energy will offset losses from the drop in CenterPoint Energy's long position.| CABLEVISION vs. The Travelers Companies | CABLEVISION vs. GE Aerospace | CABLEVISION vs. Walmart | CABLEVISION vs. Pfizer Inc |
| CenterPoint Energy vs. DTE Energy | CenterPoint Energy vs. Alliant Energy Corp | CenterPoint Energy vs. Ameren Corp | CenterPoint Energy vs. Pinnacle West Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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