Correlation Between EchoStar and Toast

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

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

Diversification Opportunities for EchoStar and Toast

-0.82

Correlation Coefficient

EchoStar  Toast

Pay attention - limited upside

The 3 months correlation between EchoStar and Toast is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding EchoStar and Toast Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toast Inc and EchoStar 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 EchoStar are associated (or correlated) with Toast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toast Inc has no effect on the direction of EchoStar i.e., EchoStar and Toast go up and down completely randomly.

Pair Corralation between EchoStar and Toast

Given the investment horizon of 90 days EchoStar is expected to generate 2.32 times more return on investment than Toast. However, EchoStar is 2.32 times more volatile than Toast Inc. It trades about 0.09 of its potential returns per unit of risk. Toast Inc is currently generating about 0.05 per unit of risk. If you would invest  2,528  in EchoStar on July 25, 2025 and sell it today you would earn a total of  4,695  from holding EchoStar or generate 185.72% return on investment over 90 days.

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

EchoStar  vs.  Toast Inc

EchoStar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EchoStar are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, EchoStar unveiled solid returns over the last few months and may actually be approaching a breakup point.

Toast Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Toast Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with EchoStar and Toast

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

The idea behind EchoStar and Toast Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.