Correlation Between Cablevision Holding and Autopistas Del

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

By analyzing existing cross correlation between Cablevision Holding SA and Autopistas del Sol, you can compare the effects of market volatilities on Cablevision Holding and Autopistas Del 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 Holding with a short position of Autopistas Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cablevision Holding and Autopistas Del.

Diversification Opportunities for Cablevision Holding and Autopistas Del

0.54

Correlation Coefficient

Cablevision Holding  Autopistas Del

Very weak diversification

The 3 months correlation between Cablevision and Autopistas is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cablevision Holding SA and Autopistas del Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopistas del Sol and Cablevision Holding 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 Holding SA are associated (or correlated) with Autopistas Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopistas del Sol has no effect on the direction of Cablevision Holding i.e., Cablevision Holding and Autopistas Del go up and down completely randomly.

Pair Corralation between Cablevision Holding and Autopistas Del

Assuming the 90 days trading horizon Cablevision Holding SA is expected to generate 1.04 times more return on investment than Autopistas Del. However, Cablevision Holding is 1.04 times more volatile than Autopistas del Sol. It trades about -0.01 of its potential returns per unit of risk. Autopistas del Sol is currently generating about -0.16 per unit of risk. If you would invest  725,000  in Cablevision Holding SA on December 26, 2024 and sell it today you would lose (25,000) from holding Cablevision Holding SA or give up 3.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Cablevision Holding SA  vs.  Autopistas del Sol

Cablevision Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cablevision Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Cablevision Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Autopistas del Sol

Risk-Adjusted Performance

Very Weak

Over the last 90 days Autopistas del Sol 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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cablevision Holding and Autopistas Del

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

The idea behind Cablevision Holding SA and Autopistas del Sol 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.