Correlation Between Cogeco Communications and Thunderbird Entertainment
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Thunderbird Entertainment 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 Thunderbird Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Thunderbird Entertainment Group, you can compare the effects of market volatilities on Cogeco Communications and Thunderbird Entertainment 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 Thunderbird Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Thunderbird Entertainment.
Diversification Opportunities for Cogeco Communications and Thunderbird Entertainment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cogeco and Thunderbird is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Thunderbird Entertainment Grou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderbird Entertainment 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 Thunderbird Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderbird Entertainment has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Thunderbird Entertainment go up and down completely randomly.
Pair Corralation between Cogeco Communications and Thunderbird Entertainment
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.45 times more return on investment than Thunderbird Entertainment. However, Cogeco Communications is 2.21 times less risky than Thunderbird Entertainment. It trades about 0.01 of its potential returns per unit of risk. Thunderbird Entertainment Group is currently generating about -0.02 per unit of risk. If you would invest 6,998 in Cogeco Communications on August 26, 2024 and sell it today you would lose (70.00) from holding Cogeco Communications or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. Thunderbird Entertainment Grou
Performance |
| Timeline |
| Cogeco Communications |
| Thunderbird Entertainment |
Cogeco Communications and Thunderbird Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Thunderbird Entertainment
The main advantage of trading using opposite Cogeco Communications and Thunderbird Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Thunderbird Entertainment 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 Thunderbird Entertainment will offset losses from the drop in Thunderbird Entertainment's long position.| Cogeco Communications vs. Cogeco Inc | Cogeco Communications vs. Quebecor | Cogeco Communications vs. Transcontinental | Cogeco Communications vs. Stella Jones |
| Thunderbird Entertainment vs. Parkit Enterprise | Thunderbird Entertainment vs. WildBrain | Thunderbird Entertainment vs. Quisitive Technology Solutions | Thunderbird Entertainment vs. Playgon Games |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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