Correlation Between Cogent Communications and Cable One
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and Cable One 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 Cogent Communications and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Group and Cable One, you can compare the effects of market volatilities on Cogent Communications and Cable One 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 Cogent Communications with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Cable One.
Diversification Opportunities for Cogent Communications and Cable One
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogent and Cable is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Group and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and Cogent Communications 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 Cogent Communications Group are associated (or correlated) with Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of Cogent Communications i.e., Cogent Communications and Cable One go up and down completely randomly.
Pair Corralation between Cogent Communications and Cable One
Given the investment horizon of 90 days Cogent Communications Group is expected to under-perform the Cable One. But the stock apears to be less risky and, when comparing its historical volatility, Cogent Communications Group is 1.0 times less risky than Cable One. The stock trades about -0.01 of its potential returns per unit of risk. The Cable One is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 14,031 in Cable One on July 20, 2025 and sell it today you would earn a total of 2,364 from holding Cable One or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Group vs. Cable One
Performance |
| Timeline |
| Cogent Communications |
| Cable One |
Cogent Communications and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Cable One
The main advantage of trading using opposite Cogent Communications and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| Cogent Communications vs. Liberty Broadband Srs | Cogent Communications vs. Charter Communications | Cogent Communications vs. Liberty Broadband Srs | Cogent Communications vs. TIM Participacoes SA |
| Cable One vs. GCI Liberty, | Cable One vs. Altice USA | Cable One vs. Getty Images Holdings | Cable One vs. Shenandoah Telecommunications Co |
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.
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