Correlation Between Charter Communications and SSC Technologies

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

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

Diversification Opportunities for Charter Communications and SSC Technologies

-0.24

Correlation Coefficient

Charter Communications  SSC Technologies

Very good diversification

The 3 months correlation between Charter and SSC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Charter Communications and SSC Technologies Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Hol and Charter 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 Charter Communications are associated (or correlated) with SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Hol has no effect on the direction of Charter Communications i.e., Charter Communications and SSC Technologies go up and down completely randomly.

Pair Corralation between Charter Communications and SSC Technologies

Assuming the 90 days trading horizon Charter Communications is expected to generate 84.1 times more return on investment than SSC Technologies. However, Charter Communications is 84.1 times more volatile than SSC Technologies Holdings,. It trades about 0.04 of its potential returns per unit of risk. SSC Technologies Holdings, is currently generating about 0.13 per unit of risk. If you would invest  3,529  in Charter Communications on April 25, 2025 and sell it today you would earn a total of  133.00  from holding Charter Communications or generate 3.77% return on investment over 90 days.

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

Charter Communications  vs.  SSC Technologies Holdings,

Charter Communications

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Charter Communications are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Charter Communications is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SSC Technologies Hol

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SSC Technologies Holdings, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SSC Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Charter Communications and SSC Technologies

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

The idea behind Charter Communications and SSC Technologies Holdings, 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.