Correlation Between Boat Rocker and Cogeco Communications
Can any of the company-specific risk be diversified away by investing in both Boat Rocker and Cogeco 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 Boat Rocker and Cogeco Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boat Rocker Media and Cogeco Communications, you can compare the effects of market volatilities on Boat Rocker and Cogeco 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 Boat Rocker with a short position of Cogeco Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boat Rocker and Cogeco Communications.
Diversification Opportunities for Boat Rocker and Cogeco Communications
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boat and Cogeco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Boat Rocker Media and Cogeco Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Communications and Boat Rocker 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 Boat Rocker Media are associated (or correlated) with Cogeco Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogeco Communications has no effect on the direction of Boat Rocker i.e., Boat Rocker and Cogeco Communications go up and down completely randomly.
Pair Corralation between Boat Rocker and Cogeco Communications
Assuming the 90 days trading horizon Boat Rocker Media is expected to under-perform the Cogeco Communications. In addition to that, Boat Rocker is 3.82 times more volatile than Cogeco Communications. It trades about -0.15 of its total potential returns per unit of risk. Cogeco Communications is currently generating about 0.16 per unit of volatility. If you would invest 6,737 in Cogeco Communications on September 5, 2024 and sell it today you would earn a total of 602.00 from holding Cogeco Communications or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boat Rocker Media vs. Cogeco Communications
Performance |
| Timeline |
| Boat Rocker Media |
| Cogeco Communications |
Boat Rocker and Cogeco Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boat Rocker and Cogeco Communications
The main advantage of trading using opposite Boat Rocker and Cogeco Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boat Rocker position performs unexpectedly, Cogeco 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 Cogeco Communications will offset losses from the drop in Cogeco Communications' long position.| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
| Cogeco Communications vs. GreenPower Motor | Cogeco Communications vs. Royal Helium | Cogeco Communications vs. Excelsior Mining Corp | Cogeco Communications vs. Vista Gold |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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