Correlation Between QUALCOMM Incorporated and Cablevision Holding

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

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

Diversification Opportunities for QUALCOMM Incorporated and Cablevision Holding

0.17

Correlation Coefficient

QUALCOMM Incorporated  Cablevision Holding

Average diversification

The 3 months correlation between QUALCOMM and Cablevision is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM Incorporated and Cablevision Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cablevision Holding and QUALCOMM Incorporated 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 QUALCOMM Incorporated 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 QUALCOMM Incorporated i.e., QUALCOMM Incorporated and Cablevision Holding go up and down completely randomly.

Pair Corralation between QUALCOMM Incorporated and Cablevision Holding

Assuming the 90 days trading horizon QUALCOMM Incorporated is expected to generate 0.78 times more return on investment than Cablevision Holding. However, QUALCOMM Incorporated is 1.29 times less risky than Cablevision Holding. It trades about 0.05 of its potential returns per unit of risk. Cablevision Holding SA is currently generating about 0.04 per unit of risk. If you would invest  1,377  in QUALCOMM Incorporated on April 24, 2025 and sell it today you would earn a total of  63.00  from holding QUALCOMM Incorporated or generate 4.58% return on investment over 90 days.

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

QUALCOMM Incorporated  vs.  Cablevision Holding SA

QUALCOMM Incorporated

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QUALCOMM Incorporated are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, QUALCOMM Incorporated 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

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cablevision Holding SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, Cablevision Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with QUALCOMM Incorporated and Cablevision Holding

The main advantage of trading using opposite QUALCOMM Incorporated and Cablevision Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUALCOMM Incorporated 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 QUALCOMM Incorporated 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 CEOs Directory module to screen CEOs from public companies around the world.