Correlation Between Garovaglio and Cablevision Holding

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

By analyzing existing cross correlation between Garovaglio y Zorraquin and Cablevision Holding SA, you can compare the effects of market volatilities on Garovaglio and Cablevision Holding 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 Garovaglio with a short position of Cablevision Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garovaglio and Cablevision Holding.

Diversification Opportunities for Garovaglio and Cablevision Holding

0.29

Correlation Coefficient

Garovaglio  Cablevision Holding

Modest diversification

The 3 months correlation between Garovaglio and Cablevision is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Garovaglio y Zorraquin and Cablevision Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cablevision Holding and Garovaglio 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 Garovaglio y Zorraquin are associated (or correlated) with Cablevision Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cablevision Holding has no effect on the direction of Garovaglio i.e., Garovaglio and Cablevision Holding go up and down completely randomly.

Pair Corralation between Garovaglio and Cablevision Holding

Assuming the 90 days trading horizon Garovaglio y Zorraquin is expected to under-perform the Cablevision Holding. In addition to that, Garovaglio is 3.23 times more volatile than Cablevision Holding SA. It trades about -0.01 of its total potential returns per unit of risk. Cablevision Holding SA is currently generating about 0.13 per unit of volatility. If you would invest  603,000  in Cablevision Holding SA on May 7, 2025 and sell it today you would earn a total of  88,000  from holding Cablevision Holding SA or generate 14.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Garovaglio y Zorraquin  vs.  Cablevision Holding SA

Garovaglio y Zorraquin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Garovaglio y Zorraquin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Garovaglio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cablevision Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cablevision Holding SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, Cablevision Holding sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Garovaglio and Cablevision Holding

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

The idea behind Garovaglio y Zorraquin and Cablevision Holding SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.