Correlation Between KORE Group and Shenandoah Telecommunicatio

Can any of the company-specific risk be diversified away by investing in both KORE Group and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co, you can compare the effects of market volatilities on KORE Group and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Shenandoah Telecommunicatio.

Diversification Opportunities for KORE Group and Shenandoah Telecommunicatio

-0.72

Correlation Coefficient

KORE Group  Shenandoah Telecommunicatio

Pay attention - limited upside

The 3 months correlation between KORE and Shenandoah is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of KORE Group i.e., KORE Group and Shenandoah Telecommunicatio go up and down completely randomly.

Pair Corralation between KORE Group and Shenandoah Telecommunicatio

Given the investment horizon of 90 days KORE Group Holdings is expected to generate 3.02 times more return on investment than Shenandoah Telecommunicatio. However, KORE Group is 3.02 times more volatile than Shenandoah Telecommunications Co. It trades about 0.12 of its potential returns per unit of risk. Shenandoah Telecommunications Co is currently generating about -0.11 per unit of risk. If you would invest  160.00  in KORE Group Holdings on November 29, 2024 and sell it today you would earn a total of  72.00  from holding KORE Group Holdings or generate 45.0% return on investment over 90 days.

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

KORE Group Holdings  vs.  Shenandoah Telecommunications

KORE Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KORE Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, KORE Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Shenandoah Telecommunicatio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shenandoah Telecommunications Co 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with KORE Group and Shenandoah Telecommunicatio

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

The idea behind KORE Group Holdings and Shenandoah Telecommunications Co 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..