Correlation Between Tower One and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both Tower One and Cogent Communications 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 Tower One and Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower One Wireless and Cogent Communications Holdings, you can compare the effects of market volatilities on Tower One and Cogent Communications 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 Tower One with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower One and Cogent Communications.
Diversification Opportunities for Tower One and Cogent Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tower and Cogent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower One Wireless and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and Tower One 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 Tower One Wireless are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of Tower One i.e., Tower One and Cogent Communications go up and down completely randomly.
Pair Corralation between Tower One and Cogent Communications
If you would invest 7,100 in Cogent Communications Holdings on November 27, 2024 and sell it today you would earn a total of 550.00 from holding Cogent Communications Holdings or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower One Wireless vs. Cogent Communications Holdings
Performance |
| Timeline |
| Tower One Wireless |
| Cogent Communications |
Tower One and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower One and Cogent Communications
The main advantage of trading using opposite Tower One and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower One position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| Tower One vs. SOGECLAIR SA INH | Tower One vs. FAST RETAIL ADR | Tower One vs. SYSTEMAIR AB | Tower One vs. SIDETRADE EO 1 |
| Cogent Communications vs. PARKEN Sport Entertainment | Cogent Communications vs. Universal Entertainment | Cogent Communications vs. CNVISION MEDIA | Cogent Communications vs. SQUIRREL MEDIA SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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