Correlation Between First National and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both First National and Rogers 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 First National and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Financial and Rogers Communications, you can compare the effects of market volatilities on First National and Rogers 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 First National with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Rogers Communications.
Diversification Opportunities for First National and Rogers Communications
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Rogers is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding First National Financial and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and First National 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 First National Financial are associated (or correlated) with Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of First National i.e., First National and Rogers Communications go up and down completely randomly.
Pair Corralation between First National and Rogers Communications
Assuming the 90 days trading horizon First National Financial is expected to generate 0.61 times more return on investment than Rogers Communications. However, First National Financial is 1.63 times less risky than Rogers Communications. It trades about 0.07 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.01 per unit of risk. If you would invest 1,146 in First National Financial on September 14, 2024 and sell it today you would earn a total of 399.00 from holding First National Financial or generate 34.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First National Financial vs. Rogers Communications
Performance |
| Timeline |
| First National Financial |
| Rogers Communications |
First National and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Rogers Communications
The main advantage of trading using opposite First National and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Rogers 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 Rogers Communications will offset losses from the drop in Rogers Communications' long position.| First National vs. Economic Investment Trust | First National vs. Stampede Drilling | First National vs. Altair Resources | First National vs. Pembina Pipeline Corp |
| Rogers Communications vs. UPS CDR | Rogers Communications vs. HOME DEPOT CDR | Rogers Communications vs. UnitedHealth Group CDR | Rogers 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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