Correlation Between Consolidated Communications and Hugo Boss

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

By analyzing existing cross correlation between Consolidated Communications Holdings and Hugo Boss AG, you can compare the effects of market volatilities on Consolidated Communications and Hugo Boss 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 Consolidated Communications with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Communications and Hugo Boss.

Diversification Opportunities for Consolidated Communications and Hugo Boss

0.0

Correlation Coefficient

Consolidated Communications  Hugo Boss

Pay attention - limited upside

The 3 months correlation between Consolidated and Hugo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Communications Ho and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Consolidated Communications 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 Consolidated Communications Holdings are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Consolidated Communications i.e., Consolidated Communications and Hugo Boss go up and down completely randomly.

Pair Corralation between Consolidated Communications and Hugo Boss

If you would invest  444.00  in Consolidated Communications Holdings on October 5, 2024 and sell it today you would earn a total of  4.00  from holding Consolidated Communications Holdings or generate 0.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Consolidated Communications Ho  vs.  Hugo Boss AG

Consolidated Communications

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Consolidated Communications Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Consolidated Communications may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Hugo Boss AG

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Hugo Boss AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Hugo Boss is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Consolidated Communications and Hugo Boss

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

The idea behind Consolidated Communications Holdings and Hugo Boss AG 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.