Correlation Between Altice USA and Pharvaris

Can any of the company-specific risk be diversified away by investing in both Altice USA and Pharvaris 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 Altice USA and Pharvaris into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altice USA and Pharvaris BV, you can compare the effects of market volatilities on Altice USA and Pharvaris 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 Altice USA with a short position of Pharvaris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altice USA and Pharvaris.

Diversification Opportunities for Altice USA and Pharvaris

-0.03

Correlation Coefficient

Altice USA  Pharvaris

Good diversification

The 3 months correlation between Altice and Pharvaris is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Altice USA and Pharvaris BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharvaris BV and Altice USA 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 Altice USA are associated (or correlated) with Pharvaris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharvaris BV has no effect on the direction of Altice USA i.e., Altice USA and Pharvaris go up and down completely randomly.

Pair Corralation between Altice USA and Pharvaris

Given the investment horizon of 90 days Altice USA is expected to generate 1.11 times more return on investment than Pharvaris. However, Altice USA is 1.11 times more volatile than Pharvaris BV. It trades about 0.1 of its potential returns per unit of risk. Pharvaris BV is currently generating about -0.09 per unit of risk. If you would invest  234.00  in Altice USA on December 30, 2024 and sell it today you would earn a total of  43.00  from holding Altice USA or generate 18.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altice USA  vs.  Pharvaris BV

Altice USA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altice USA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Altice USA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pharvaris BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pharvaris BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Altice USA and Pharvaris

The main advantage of trading using opposite Altice USA and Pharvaris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altice USA position performs unexpectedly, Pharvaris 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 Pharvaris will offset losses from the drop in Pharvaris' long position.

The idea behind Altice USA and Pharvaris BV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.