Correlation Between Clairvest and Cogeco
Can any of the company-specific risk be diversified away by investing in both Clairvest and Cogeco 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 Clairvest and Cogeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clairvest Group and Cogeco Inc, you can compare the effects of market volatilities on Clairvest and Cogeco 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 Clairvest with a short position of Cogeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clairvest and Cogeco.
Diversification Opportunities for Clairvest and Cogeco
Weak diversification
The 3 months correlation between Clairvest and Cogeco is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Clairvest Group and Cogeco Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Inc and Clairvest 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 Clairvest Group are associated (or correlated) with Cogeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogeco Inc has no effect on the direction of Clairvest i.e., Clairvest and Cogeco go up and down completely randomly.
Pair Corralation between Clairvest and Cogeco
Assuming the 90 days trading horizon Clairvest Group is expected to under-perform the Cogeco. But the stock apears to be less risky and, when comparing its historical volatility, Clairvest Group is 1.32 times less risky than Cogeco. The stock trades about 0.0 of its potential returns per unit of risk. The Cogeco Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,441 in Cogeco Inc on November 9, 2024 and sell it today you would earn a total of 52.00 from holding Cogeco Inc or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Clairvest Group vs. Cogeco Inc
Performance |
| Timeline |
| Clairvest Group |
| Cogeco Inc |
Clairvest and Cogeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clairvest and Cogeco
The main advantage of trading using opposite Clairvest and Cogeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clairvest position performs unexpectedly, Cogeco 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 Cogeco will offset losses from the drop in Cogeco's long position.| Clairvest vs. Clarke Inc | Clairvest vs. Guardian Capital Group | Clairvest vs. Accord Financial Corp | Clairvest vs. E L Financial Corp |
| Cogeco vs. Cogeco Communications | Cogeco vs. Quebecor | Cogeco vs. Transcontinental | Cogeco vs. Stella Jones |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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