Correlation Between Cogent Communications and Tower One
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and Tower One 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 Cogent Communications and Tower One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and Tower One Wireless, you can compare the effects of market volatilities on Cogent Communications and Tower One 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 Cogent Communications with a short position of Tower One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Tower One.
Diversification Opportunities for Cogent Communications and Tower One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cogent and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and Tower One Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower One Wireless and Cogent 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 Cogent Communications Holdings are associated (or correlated) with Tower One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower One Wireless has no effect on the direction of Cogent Communications i.e., Cogent Communications and Tower One go up and down completely randomly.
Pair Corralation between Cogent Communications and Tower One
If you would invest 7,100 in Cogent Communications Holdings on November 27, 2024 and sell it today you would earn a total of 550.00 from holding Cogent Communications Holdings or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. Tower One Wireless
Performance |
| Timeline |
| Cogent Communications |
| Tower One Wireless |
Cogent Communications and Tower One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Tower One
The main advantage of trading using opposite Cogent Communications and Tower One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, Tower One 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 Tower One will offset losses from the drop in Tower One's long position.| Cogent Communications vs. PARKEN Sport Entertainment | Cogent Communications vs. Universal Entertainment | Cogent Communications vs. CNVISION MEDIA | Cogent Communications vs. SQUIRREL MEDIA SA |
| Tower One vs. SOGECLAIR SA INH | Tower One vs. FAST RETAIL ADR | Tower One vs. SYSTEMAIR AB | Tower One vs. SIDETRADE EO 1 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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