Correlation Between Broadridge Financial and Cable One

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Can any of the company-specific risk be diversified away by investing in both Broadridge Financial 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 Broadridge Financial and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadridge Financial Solutions, and Cable One, you can compare the effects of market volatilities on Broadridge Financial 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 Broadridge Financial with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadridge Financial and Cable One.

Diversification Opportunities for Broadridge Financial and Cable One

BroadridgeCableDiversified AwayBroadridgeCableDiversified Away100%
-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Broadridge and Cable is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Broadridge Financial Solutions and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and Broadridge Financial 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 Broadridge Financial Solutions, 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 Broadridge Financial i.e., Broadridge Financial and Cable One go up and down completely randomly.

Pair Corralation between Broadridge Financial and Cable One

Assuming the 90 days trading horizon Broadridge Financial Solutions, is expected to generate 0.02 times more return on investment than Cable One. However, Broadridge Financial Solutions, is 63.06 times less risky than Cable One. It trades about 0.13 of its potential returns per unit of risk. Cable One is currently generating about -0.18 per unit of risk. If you would invest  26,209  in Broadridge Financial Solutions, on November 8, 2024 and sell it today you would earn a total of  89.00  from holding Broadridge Financial Solutions, or generate 0.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.28%
ValuesDaily Returns

Broadridge Financial Solutions  vs.  Cable One

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 01020304050
JavaScript chart by amCharts 3.21.15B1RF34 C1AB34
       Timeline  
Broadridge Financial 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Broadridge Financial Solutions, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Broadridge Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb262.1262.2262.3262.4262.5262.6262.7262.8262.9
Cable One 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cable One has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanFebDecJanFeb91011121314

Broadridge Financial and Cable One Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.0853-0.0657-0.046-0.0264-0.0067350.01320.03520.05710.07910.11 50100150200
JavaScript chart by amCharts 3.21.15B1RF34 C1AB34
       Returns  

Pair Trading with Broadridge Financial and Cable One

The main advantage of trading using opposite Broadridge Financial and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadridge Financial 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.
The idea behind Broadridge Financial Solutions, and Cable One 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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