Charter Stock Story

CHTR
 Stock
  

USD 482.83  1.91  0.40%   

As many rational traders are trying to avoid communication services space, it makes sense to sum up Charter Communicatio a little further and understand how it stands against Disney and other similar entities. We are going to discuss some of the competitive aspects of both Charter and Disney.
Published over two weeks ago
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Are retail investors buying Charter Communicatio (NASDAQ:CHTR) or Disney?

By analyzing existing basic indicators between Charter Communicatio and Disney, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Disney with a short position in Charter Communicatio. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Charter Communicatio has an asset utilization ratio of 133.18 percent. This connotes that the company is making $1.33 for each dollar of assets. An increasing asset utilization means that Charter Communicatio is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Charter or Verizon is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Charter Communicatio's Liquidity

Charter Communicatio financial leverage refers to using borrowed capital as a funding source to finance Charter Communicatio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Charter Communicatio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Charter Communicatio's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Charter Communicatio, but it might be worth checking our own buy vs. sell analysis

Correlation Between Charter and Verizon Communications

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Charter Communicatio together with similar or unrelated positions with a negative correlation. For example, you can also add Verizon Communications to your portfolio. If Verizon Communications is not perfectly correlated to Charter Communicatio it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Charter Communicatio for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CHTR and VZ for more information.

Note

Are you currently holding both Charter Communicatio and Verizon Communications in your portfolio?
Please note if you are using this as a pair-trade strategy between Charter Communicatio and Verizon Communications, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Detailed Perspective On Charter Communicatio

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Charter Communicatio revenue. Based on the latest financial disclosure, Charter Communicatio reported 52.36 B of revenue. This is 256.08% higher than that of the Communication Services sector and significantly higher than that of the Entertainment industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Disney we see revenue of 76.62 B, which is much higher than that of the Entertainment

Charter52.36 Billion
Sector0.0
Disney76.62 Billion
52.4 B
Charter
Sector
76.6 B
Disney

Charter Communicatio has 92 percent chance to stay above $441 in 2 months

Latest standard deviation is at 2.62. Charter Communicatio exhibits very low volatility with skewness of -0.76 and kurtosis of 2.09. However, we advise investors to further study Charter Communicatio technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Charter Communicatio's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Charter Communicatio's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Charter Communicatio Implied Volatility

Charter Communicatio's implied volatility exposes the market's sentiment of Charter Communicatio stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Charter Communicatio's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Charter Communicatio stock will not fluctuate a lot when Charter Communicatio's options are near their expiration.

Our Final Takeaway

While some companies in the entertainment industry are either recovering or due for a correction, Charter Communicatio may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Charter Communicatio.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Charter Communicatio. Please refer to our Terms of Use for any information regarding our disclosure principles.

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