Correlation Between BluMetric Environmental and Cogeco
Can any of the company-specific risk be diversified away by investing in both BluMetric Environmental and Cogeco 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 BluMetric Environmental and Cogeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BluMetric Environmental and Cogeco Inc, you can compare the effects of market volatilities on BluMetric Environmental and Cogeco 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 BluMetric Environmental with a short position of Cogeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BluMetric Environmental and Cogeco.
Diversification Opportunities for BluMetric Environmental and Cogeco
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BluMetric and Cogeco is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BluMetric Environmental and Cogeco Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Inc and BluMetric Environmental 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 BluMetric Environmental are associated (or correlated) with Cogeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogeco Inc has no effect on the direction of BluMetric Environmental i.e., BluMetric Environmental and Cogeco go up and down completely randomly.
Pair Corralation between BluMetric Environmental and Cogeco
Assuming the 90 days horizon BluMetric Environmental is expected to generate 3.04 times more return on investment than Cogeco. However, BluMetric Environmental is 3.04 times more volatile than Cogeco Inc. It trades about 0.06 of its potential returns per unit of risk. Cogeco Inc is currently generating about 0.01 per unit of risk. If you would invest 40.00 in BluMetric Environmental on November 2, 2024 and sell it today you would earn a total of 54.00 from holding BluMetric Environmental or generate 135.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
BluMetric Environmental vs. Cogeco Inc
Performance |
| Timeline |
| BluMetric Environmental |
| Cogeco Inc |
BluMetric Environmental and Cogeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BluMetric Environmental and Cogeco
The main advantage of trading using opposite BluMetric Environmental and Cogeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BluMetric Environmental position performs unexpectedly, Cogeco 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 Cogeco will offset losses from the drop in Cogeco's long position.| BluMetric Environmental vs. BioRem Inc | BluMetric Environmental vs. CHAR Technologies | BluMetric Environmental vs. Current Water Technologies | BluMetric Environmental vs. Imaflex |
| Cogeco vs. Cogeco Communications | Cogeco vs. Quebecor | Cogeco vs. Transcontinental | Cogeco vs. Stella Jones |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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