Correlation Between Cable One and IDT
Can any of the company-specific risk be diversified away by investing in both Cable One and IDT 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 Cable One and IDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and IDT Corporation, you can compare the effects of market volatilities on Cable One and IDT 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 Cable One with a short position of IDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and IDT.
Diversification Opportunities for Cable One and IDT
Very weak diversification
The 3 months correlation between Cable and IDT is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cable One and IDT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDT Corporation and Cable One 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 Cable One are associated (or correlated) with IDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDT Corporation has no effect on the direction of Cable One i.e., Cable One and IDT go up and down completely randomly.
Pair Corralation between Cable One and IDT
Given the investment horizon of 90 days Cable One is expected to generate 1.27 times more return on investment than IDT. However, Cable One is 1.27 times more volatile than IDT Corporation. It trades about -0.07 of its potential returns per unit of risk. IDT Corporation is currently generating about -0.13 per unit of risk. If you would invest 16,712 in Cable One on September 13, 2025 and sell it today you would lose (3,145) from holding Cable One or give up 18.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cable One vs. IDT Corp.
Performance |
| Timeline |
| Cable One |
| IDT Corporation |
Cable One and IDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cable One and IDT
The main advantage of trading using opposite Cable One and IDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One position performs unexpectedly, IDT 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 IDT will offset losses from the drop in IDT's long position.| Cable One vs. Sify Technologies Limited | Cable One vs. Shenandoah Telecommunications Co | Cable One vs. Shutterstock | Cable One vs. Getty Images Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |