Correlation Between Highlight Communications and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Highlight Communications 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 Highlight Communications and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highlight Communications AG and Rogers Communications, you can compare the effects of market volatilities on Highlight Communications 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 Highlight Communications with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highlight Communications and Rogers Communications.
Diversification Opportunities for Highlight Communications and Rogers Communications
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Highlight and Rogers is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Highlight Communications AG and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Highlight Communications 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 Highlight Communications AG 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 Highlight Communications i.e., Highlight Communications and Rogers Communications go up and down completely randomly.
Pair Corralation between Highlight Communications and Rogers Communications
Assuming the 90 days trading horizon Highlight Communications AG is expected to under-perform the Rogers Communications. In addition to that, Highlight Communications is 3.21 times more volatile than Rogers Communications. It trades about -0.12 of its total potential returns per unit of risk. Rogers Communications is currently generating about -0.04 per unit of volatility. If you would invest 3,600 in Rogers Communications on August 31, 2024 and sell it today you would lose (240.00) from holding Rogers Communications or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Highlight Communications AG vs. Rogers Communications
Performance |
| Timeline |
| Highlight Communications |
| Rogers Communications |
Highlight Communications and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highlight Communications and Rogers Communications
The main advantage of trading using opposite Highlight Communications and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highlight Communications 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.| Highlight Communications vs. Netflix | Highlight Communications vs. Warner Music Group | Highlight Communications vs. Superior Plus Corp | Highlight Communications vs. NMI Holdings |
| Rogers Communications vs. Apple Inc | Rogers Communications vs. Apple Inc | Rogers Communications vs. Apple Inc | Rogers Communications vs. Apple Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |