Correlation Between Media and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Media 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 Media and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and Rogers Communications, you can compare the effects of market volatilities on Media 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 Media with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Rogers Communications.
Diversification Opportunities for Media and Rogers Communications
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Media and Rogers is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Media 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 Media and Games 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 Media i.e., Media and Rogers Communications go up and down completely randomly.
Pair Corralation between Media and Rogers Communications
Assuming the 90 days trading horizon Media and Games is expected to generate 3.24 times more return on investment than Rogers Communications. However, Media is 3.24 times more volatile than Rogers Communications. It trades about 0.18 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.04 per unit of risk. If you would invest 164.00 in Media and Games on August 31, 2024 and sell it today you would earn a total of 177.00 from holding Media and Games or generate 107.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Media and Games vs. Rogers Communications
Performance |
| Timeline |
| Media and Games |
| Rogers Communications |
Media and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Rogers Communications
The main advantage of trading using opposite Media and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.| Media vs. INFORMATION SVC GRP | Media vs. Bausch Health Companies | Media vs. National Health Investors | Media vs. Automatic Data Processing |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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