Correlation Between Consolidated Communications and KORE Group

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

By analyzing existing cross correlation between Consolidated Communications and KORE Group Holdings, you can compare the effects of market volatilities on Consolidated Communications and KORE Group 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 KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Communications and KORE Group.

Diversification Opportunities for Consolidated Communications and KORE Group

0.0

Correlation Coefficient

Consolidated Communications  KORE Group

Pay attention - limited upside

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

Pair Corralation between Consolidated Communications and KORE Group

If you would invest  272.00  in KORE Group Holdings on December 30, 2024 and sell it today you would lose (23.00) from holding KORE Group Holdings or give up 8.46% of portfolio value over 90 days.

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

Consolidated Communications  vs.  KORE Group Holdings

Consolidated Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Consolidated Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Consolidated Communications is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

KORE Group Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Consolidated Communications and KORE Group

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

The idea behind Consolidated Communications and KORE Group Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.