Correlation Between Cogeco and Clairvest
Can any of the company-specific risk be diversified away by investing in both Cogeco and Clairvest 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 and Clairvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Inc and Clairvest Group, you can compare the effects of market volatilities on Cogeco and Clairvest 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 with a short position of Clairvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco and Clairvest.
Diversification Opportunities for Cogeco and Clairvest
Excellent diversification
The 3 months correlation between Cogeco and Clairvest is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Inc and Clairvest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clairvest Group and Cogeco 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 Inc are associated (or correlated) with Clairvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clairvest Group has no effect on the direction of Cogeco i.e., Cogeco and Clairvest go up and down completely randomly.
Pair Corralation between Cogeco and Clairvest
Assuming the 90 days trading horizon Cogeco Inc is expected to under-perform the Clairvest. In addition to that, Cogeco is 1.74 times more volatile than Clairvest Group. It trades about -0.02 of its total potential returns per unit of risk. Clairvest Group is currently generating about 0.12 per unit of volatility. If you would invest 6,975 in Clairvest Group on August 29, 2024 and sell it today you would earn a total of 125.00 from holding Clairvest Group or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Inc vs. Clairvest Group
Performance |
| Timeline |
| Cogeco Inc |
| Clairvest Group |
Cogeco and Clairvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco and Clairvest
The main advantage of trading using opposite Cogeco and Clairvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco position performs unexpectedly, Clairvest 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 Clairvest will offset losses from the drop in Clairvest's long position.| Cogeco vs. Cogeco Communications | Cogeco vs. Quebecor | Cogeco vs. Transcontinental | Cogeco vs. Stella Jones |
| Clairvest vs. Clarke Inc | Clairvest vs. Guardian Capital Group | Clairvest vs. Accord Financial Corp | Clairvest vs. E L Financial Corp |
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.
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