Correlation Between Eddy Smart and Cogeco Communications
Can any of the company-specific risk be diversified away by investing in both Eddy Smart and Cogeco Communications 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 Eddy Smart and Cogeco Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eddy Smart Home and Cogeco Communications, you can compare the effects of market volatilities on Eddy Smart and Cogeco Communications 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 Eddy Smart with a short position of Cogeco Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eddy Smart and Cogeco Communications.
Diversification Opportunities for Eddy Smart and Cogeco Communications
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eddy and Cogeco is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eddy Smart Home and Cogeco Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Communications and Eddy Smart 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 Eddy Smart Home are associated (or correlated) with Cogeco Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogeco Communications has no effect on the direction of Eddy Smart i.e., Eddy Smart and Cogeco Communications go up and down completely randomly.
Pair Corralation between Eddy Smart and Cogeco Communications
Assuming the 90 days horizon Eddy Smart Home is expected to under-perform the Cogeco Communications. In addition to that, Eddy Smart is 2.8 times more volatile than Cogeco Communications. It trades about -0.2 of its total potential returns per unit of risk. Cogeco Communications is currently generating about 0.01 per unit of volatility. If you would invest 7,068 in Cogeco Communications on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Cogeco Communications or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eddy Smart Home vs. Cogeco Communications
Performance |
| Timeline |
| Eddy Smart Home |
| Cogeco Communications |
Eddy Smart and Cogeco Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eddy Smart and Cogeco Communications
The main advantage of trading using opposite Eddy Smart and Cogeco Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eddy Smart position performs unexpectedly, Cogeco Communications 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 Communications will offset losses from the drop in Cogeco Communications' long position.| Eddy Smart vs. Simply Better Brands | Eddy Smart vs. Forward Water Technologies | Eddy Smart vs. Pulse Oil Corp | Eddy Smart vs. C3 Metals |
| Cogeco Communications vs. UPS CDR | Cogeco Communications vs. HOME DEPOT CDR | Cogeco Communications vs. UnitedHealth Group CDR | Cogeco Communications vs. Costco Wholesale 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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