Correlation Between Cogeco Communications and ISign Media
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and ISign Media 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 ISign Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and iSign Media Solutions, you can compare the effects of market volatilities on Cogeco Communications and ISign Media 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 ISign Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and ISign Media.
Diversification Opportunities for Cogeco Communications and ISign Media
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cogeco and ISign is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and iSign Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSign Media Solutions 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 ISign Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSign Media Solutions has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and ISign Media go up and down completely randomly.
Pair Corralation between Cogeco Communications and ISign Media
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 1.59 times more return on investment than ISign Media. However, Cogeco Communications is 1.59 times more volatile than iSign Media Solutions. It trades about -0.1 of its potential returns per unit of risk. iSign Media Solutions is currently generating about -0.17 per unit of risk. If you would invest 7,085 in Cogeco Communications on October 12, 2024 and sell it today you would lose (196.00) from holding Cogeco Communications or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cogeco Communications vs. iSign Media Solutions
Performance |
| Timeline |
| Cogeco Communications |
| iSign Media Solutions |
Cogeco Communications and ISign Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and ISign Media
The main advantage of trading using opposite Cogeco Communications and ISign Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, ISign Media 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 ISign Media will offset losses from the drop in ISign Media's long position.| Cogeco Communications vs. Cogeco Inc | Cogeco Communications vs. Quebecor | Cogeco Communications vs. Transcontinental | Cogeco Communications vs. Stella Jones |
| ISign Media vs. Verizon Communications CDR | ISign Media vs. Enduro Metals Corp | ISign Media vs. Quorum Information Technologies | ISign Media vs. Cogeco Communications |
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.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |