Correlation Between WideOpenWest and Comcast

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Can any of the company-specific risk be diversified away by investing in both WideOpenWest and Comcast 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 WideOpenWest and Comcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WideOpenWest and Comcast, you can compare the effects of market volatilities on WideOpenWest and Comcast 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 WideOpenWest with a short position of Comcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of WideOpenWest and Comcast.

Diversification Opportunities for WideOpenWest and Comcast

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between WideOpenWest and Comcast

If you would invest  488.00  in WideOpenWest on September 7, 2024 and sell it today you would lose (2.00) from holding WideOpenWest or give up 0.41% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

WideOpenWest  vs.  Comcast

 Performance 
       Timeline  
WideOpenWest 

Risk-Adjusted Performance

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Over the last 90 days WideOpenWest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, WideOpenWest is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Comcast 

Risk-Adjusted Performance

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Weak
 
Strong
Good
Over the last 90 days Comcast has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Comcast is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

WideOpenWest and Comcast Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WideOpenWest and Comcast

The main advantage of trading using opposite WideOpenWest and Comcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WideOpenWest position performs unexpectedly, Comcast 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 Comcast will offset losses from the drop in Comcast's long position.
The idea behind WideOpenWest and Comcast 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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