Correlation Between IHS Holding and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both IHS Holding 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 IHS Holding and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and Rogers Communications, you can compare the effects of market volatilities on IHS Holding 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 IHS Holding with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and Rogers Communications.
Diversification Opportunities for IHS Holding and Rogers Communications
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IHS and Rogers is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and IHS Holding 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 IHS Holding 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 IHS Holding i.e., IHS Holding and Rogers Communications go up and down completely randomly.
Pair Corralation between IHS Holding and Rogers Communications
Considering the 90-day investment horizon IHS Holding is expected to generate 2.44 times more return on investment than Rogers Communications. However, IHS Holding is 2.44 times more volatile than Rogers Communications. It trades about 0.24 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.21 per unit of risk. If you would invest 292.00 in IHS Holding on November 1, 2024 and sell it today you would earn a total of 52.00 from holding IHS Holding or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. Rogers Communications
Performance |
| Timeline |
| IHS Holding |
| Rogers Communications |
IHS Holding and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and Rogers Communications
The main advantage of trading using opposite IHS Holding and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding 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.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
| Rogers Communications vs. BCE Inc | Rogers Communications vs. America Movil SAB | Rogers Communications vs. Telus Corp | Rogers Communications vs. Vodafone Group PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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