Correlation Between Economic Investment and Cogeco

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Economic Investment 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 Economic Investment and Cogeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Economic Investment Trust and Cogeco Inc, you can compare the effects of market volatilities on Economic Investment 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 Economic Investment with a short position of Cogeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Economic Investment and Cogeco.

Diversification Opportunities for Economic Investment and Cogeco

EconomicCogecoDiversified AwayEconomicCogecoDiversified Away100%
-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Economic and Cogeco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Economic Investment Trust and Cogeco Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Inc and Economic Investment 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 Economic Investment Trust 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 Economic Investment i.e., Economic Investment and Cogeco go up and down completely randomly.

Pair Corralation between Economic Investment and Cogeco

Assuming the 90 days trading horizon Economic Investment Trust is expected to generate 0.61 times more return on investment than Cogeco. However, Economic Investment Trust is 1.64 times less risky than Cogeco. It trades about 0.25 of its potential returns per unit of risk. Cogeco Inc is currently generating about 0.05 per unit of risk. If you would invest  16,234  in Economic Investment Trust on November 25, 2024 and sell it today you would earn a total of  2,016  from holding Economic Investment Trust or generate 12.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Economic Investment Trust  vs.  Cogeco Inc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15EVT CGO
       Timeline  
Economic Investment Trust 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Economic Investment Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Economic Investment is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb165170175180185190
Cogeco Inc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cogeco Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cogeco is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb52545658606264

Economic Investment and Cogeco Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.61-2.71-1.8-0.89-0.010.891.832.773.714.65 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15EVT CGO
       Returns  

Pair Trading with Economic Investment and Cogeco

The main advantage of trading using opposite Economic Investment and Cogeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Economic Investment 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.
The idea behind Economic Investment Trust and Cogeco Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Positions Ratings module to 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.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Transaction History
View history of all your transactions and understand their impact on performance
Money Managers
Screen money managers from public funds and ETFs managed around the world
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets