Correlation Between Fluent and Charter Communications

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

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

Diversification Opportunities for Fluent and Charter Communications

-0.17

Correlation Coefficient

Fluent  Charter Communications

Good diversification

The 3 months correlation between Fluent and Charter is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications and Fluent 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 Fluent Inc are associated (or correlated) with Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of Fluent i.e., Fluent and Charter Communications go up and down completely randomly.

Pair Corralation between Fluent and Charter Communications

Given the investment horizon of 90 days Fluent Inc is expected to generate 1.76 times more return on investment than Charter Communications. However, Fluent is 1.76 times more volatile than Charter Communications. It trades about 0.01 of its potential returns per unit of risk. Charter Communications is currently generating about -0.36 per unit of risk. If you would invest  268.00  in Fluent Inc on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Fluent Inc or generate 0.0% return on investment over 90 days.

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

Fluent Inc  vs.  Charter Communications

Fluent Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluent Inc 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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Charter Communications

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Charter Communications are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Charter Communications is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Fluent and Charter Communications

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

The idea behind Fluent Inc and Charter Communications 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.