Correlation Between Cogeco Communications and First Majestic
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and First Majestic 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 Cogeco Communications and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and First Majestic Silver, you can compare the effects of market volatilities on Cogeco Communications and First Majestic 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 Cogeco Communications with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and First Majestic.
Diversification Opportunities for Cogeco Communications and First Majestic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cogeco and First is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver and Cogeco 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 Cogeco Communications are associated (or correlated) with First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and First Majestic go up and down completely randomly.
Pair Corralation between Cogeco Communications and First Majestic
Assuming the 90 days trading horizon Cogeco Communications is expected to under-perform the First Majestic. But the stock apears to be less risky and, when comparing its historical volatility, Cogeco Communications is 1.92 times less risky than First Majestic. The stock trades about -0.25 of its potential returns per unit of risk. The First Majestic Silver is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 859.00 in First Majestic Silver on November 2, 2024 and sell it today you would earn a total of 8.00 from holding First Majestic Silver or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. First Majestic Silver
Performance |
| Timeline |
| Cogeco Communications |
| First Majestic Silver |
Cogeco Communications and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and First Majestic
The main advantage of trading using opposite Cogeco Communications and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.| Cogeco Communications vs. Cogeco Inc | Cogeco Communications vs. Quebecor | Cogeco Communications vs. Transcontinental | Cogeco Communications vs. Stella Jones |
| First Majestic vs. CNJ Capital Investments | First Majestic vs. Rogers Communications | First Majestic vs. Cogeco Communications | First Majestic vs. Aya Gold Silver |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |