Correlation Between Array Digital and Charter Communications

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

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

Diversification Opportunities for Array Digital and Charter Communications

-0.85

Correlation Coefficient

Array Digital  Charter Communications

Pay attention - limited upside

The 3 months correlation between Array and Charter is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Array Digital Infrastructure, and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications and Array Digital 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 Array Digital Infrastructure, are associated (or correlated) with Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of Array Digital i.e., Array Digital and Charter Communications go up and down completely randomly.

Pair Corralation between Array Digital and Charter Communications

Allowing for the 90-day total investment horizon Array Digital Infrastructure, is expected to generate 0.58 times more return on investment than Charter Communications. However, Array Digital Infrastructure, is 1.71 times less risky than Charter Communications. It trades about 0.21 of its potential returns per unit of risk. Charter Communications is currently generating about -0.22 per unit of risk. If you would invest  6,088  in Array Digital Infrastructure, on May 22, 2025 and sell it today you would earn a total of  1,512  from holding Array Digital Infrastructure, or generate 24.84% return on investment over 90 days.

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

Array Digital Infrastructure,  vs.  Charter Communications

Array Digital Infras

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Array Digital Infrastructure, are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Charter Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Charter Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Array Digital and Charter Communications

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

The idea behind Array Digital Infrastructure, and Charter 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.