Correlation Between B Communications and Intelsat

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both B Communications and Intelsat 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 B Communications and Intelsat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and Intelsat SA, you can compare the effects of market volatilities on B Communications and Intelsat 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 B Communications with a short position of Intelsat. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and Intelsat.

Diversification Opportunities for B Communications and Intelsat

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BCOM and Intelsat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and Intelsat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelsat SA and B 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 B Communications are associated (or correlated) with Intelsat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelsat SA has no effect on the direction of B Communications i.e., B Communications and Intelsat go up and down completely randomly.

Pair Corralation between B Communications and Intelsat

If you would invest (100.00) in Intelsat SA on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Intelsat SA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

B Communications  vs.  Intelsat SA

 Performance 
       Timeline  
B Communications 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days B Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, B Communications is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Intelsat SA 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Intelsat SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Intelsat is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

B Communications and Intelsat Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with B Communications and Intelsat

The main advantage of trading using opposite B Communications and Intelsat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, Intelsat 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 Intelsat will offset losses from the drop in Intelsat's long position.
The idea behind B Communications and Intelsat 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.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Money Managers
Screen money managers from public funds and ETFs managed around the world
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios