Correlation Between Cogeco Communications and NeXGold Mining
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and NeXGold Mining 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 NeXGold Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and NeXGold Mining Corp, you can compare the effects of market volatilities on Cogeco Communications and NeXGold Mining 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 NeXGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and NeXGold Mining.
Diversification Opportunities for Cogeco Communications and NeXGold Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cogeco and NeXGold is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and NeXGold Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeXGold Mining Corp 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 NeXGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeXGold Mining Corp has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and NeXGold Mining go up and down completely randomly.
Pair Corralation between Cogeco Communications and NeXGold Mining
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.35 times more return on investment than NeXGold Mining. However, Cogeco Communications is 2.82 times less risky than NeXGold Mining. It trades about -0.17 of its potential returns per unit of risk. NeXGold Mining Corp is currently generating about -0.33 per unit of risk. If you would invest 6,965 in Cogeco Communications on August 28, 2024 and sell it today you would lose (264.00) from holding Cogeco Communications or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. NeXGold Mining Corp
Performance |
| Timeline |
| Cogeco Communications |
| NeXGold Mining Corp |
Cogeco Communications and NeXGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and NeXGold Mining
The main advantage of trading using opposite Cogeco Communications and NeXGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, NeXGold Mining 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 NeXGold Mining will offset losses from the drop in NeXGold Mining's long position.| Cogeco Communications vs. Alphabet Inc CDR | Cogeco Communications vs. Microsoft Corp CDR | Cogeco Communications vs. NVIDIA CDR | Cogeco Communications vs. Tesla Inc CDR |
| NeXGold Mining vs. Ocumetics Technology Corp | NeXGold Mining vs. Cogeco Communications | NeXGold Mining vs. Wishpond Technologies | NeXGold Mining vs. Oculus VisionTech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |