Correlation Between Lumen Technologies and DISH Network

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

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

Diversification Opportunities for Lumen Technologies and DISH Network

0.0

Correlation Coefficient

Lumen Technologies  DISH Network

Pay attention - limited upside

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

Pair Corralation between Lumen Technologies and DISH Network

If you would invest (100.00) in DISH Network on December 27, 2024 and sell it today you would earn a total of  100.00  from holding DISH Network or generate -100.0% return on investment over 90 days.

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

Lumen Technologies  vs.  DISH Network

Lumen Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lumen Technologies 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 primary indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

DISH Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days DISH Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DISH Network is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Lumen Technologies and DISH Network

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

The idea behind Lumen Technologies and DISH Network 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.