Correlation Between Radius Global and Altice USA

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

By analyzing existing cross correlation between Radius Global Infrastructure and Altice USA, you can compare the effects of market volatilities on Radius Global and Altice USA 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 Radius Global with a short position of Altice USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radius Global and Altice USA.

Diversification Opportunities for Radius Global and Altice USA

0.0

Correlation Coefficient

Radius Global  Altice USA

Pay attention - limited upside

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

Pair Corralation between Radius Global and Altice USA

If you would invest  256.00  in Altice USA on December 19, 2024 and sell it today you would lose (2.00) from holding Altice USA or give up 0.78% of portfolio value over 90 days.

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

Radius Global Infrastructure  vs.  Altice USA

Radius Global Infras

Risk-Adjusted Performance

Very Weak

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

Altice USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altice USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Altice USA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Radius Global and Altice USA

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

The idea behind Radius Global Infrastructure and Altice USA 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.