Correlation Between Cogeco Communications and Boat Rocker
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Boat Rocker 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 Boat Rocker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Boat Rocker Media, you can compare the effects of market volatilities on Cogeco Communications and Boat Rocker 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 Boat Rocker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Boat Rocker.
Diversification Opportunities for Cogeco Communications and Boat Rocker
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cogeco and Boat is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Boat Rocker Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boat Rocker Media 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 Boat Rocker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boat Rocker Media has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Boat Rocker go up and down completely randomly.
Pair Corralation between Cogeco Communications and Boat Rocker
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.26 times more return on investment than Boat Rocker. However, Cogeco Communications is 3.82 times less risky than Boat Rocker. It trades about 0.16 of its potential returns per unit of risk. Boat Rocker Media is currently generating about -0.15 per unit of risk. 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 |
Cogeco Communications vs. Boat Rocker Media
Performance |
| Timeline |
| Cogeco Communications |
| Boat Rocker Media |
Cogeco Communications and Boat Rocker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Boat Rocker
The main advantage of trading using opposite Cogeco Communications and Boat Rocker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Boat Rocker 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 Boat Rocker will offset losses from the drop in Boat Rocker's long position.| Cogeco Communications vs. GreenPower Motor | Cogeco Communications vs. Royal Helium | Cogeco Communications vs. Excelsior Mining Corp | Cogeco Communications vs. Vista Gold |
| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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