Correlation Between Calix and Altice USA

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

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

Diversification Opportunities for Calix and Altice USA

0.15

Correlation Coefficient

Calix  Altice USA

Average diversification

The 3 months correlation between Calix and Altice is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Calix Inc and Altice USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altice USA and Calix 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 Calix Inc 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 Calix i.e., Calix and Altice USA go up and down completely randomly.

Pair Corralation between Calix and Altice USA

Given the investment horizon of 90 days Calix Inc is expected to generate 0.31 times more return on investment than Altice USA. However, Calix Inc is 3.22 times less risky than Altice USA. It trades about 0.38 of its potential returns per unit of risk. Altice USA is currently generating about 0.02 per unit of risk. If you would invest  4,200  in Calix Inc on May 2, 2025 and sell it today you would earn a total of  1,487  from holding Calix Inc or generate 35.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Calix Inc  vs.  Altice USA

Calix Inc

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Calix Inc are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Calix showed solid returns over the last few months and may actually be approaching a breakup point.

Altice USA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altice USA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Altice USA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calix and Altice USA

The main advantage of trading using opposite Calix and Altice USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calix 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 Calix Inc 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.

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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.