Correlation Between KORE Group and Consolidated Communications

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

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

Diversification Opportunities for KORE Group and Consolidated Communications

0.0

Correlation Coefficient

KORE Group  Consolidated Communications

Pay attention - limited upside

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

Pair Corralation between KORE Group and Consolidated Communications

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

KORE Group Holdings  vs.  Consolidated Communications

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.

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.

Pair Trading with KORE Group and Consolidated Communications

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

The idea behind KORE Group Holdings and Consolidated 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.