Correlation Between Cogent Communications and Hastings Technology
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and Hastings Technology 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 Hastings Technology 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 Hastings Technology Metals, you can compare the effects of market volatilities on Cogent Communications and Hastings Technology 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 Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Hastings Technology.
Diversification Opportunities for Cogent Communications and Hastings Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cogent and Hastings is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology 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 Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of Cogent Communications i.e., Cogent Communications and Hastings Technology go up and down completely randomly.
Pair Corralation between Cogent Communications and Hastings Technology
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to generate 0.27 times more return on investment than Hastings Technology. However, Cogent Communications Holdings is 3.75 times less risky than Hastings Technology. It trades about 0.04 of its potential returns per unit of risk. Hastings Technology Metals is currently generating about 0.01 per unit of risk. If you would invest 6,204 in Cogent Communications Holdings on September 14, 2024 and sell it today you would earn a total of 1,046 from holding Cogent Communications Holdings or generate 16.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. Hastings Technology Metals
Performance |
| Timeline |
| Cogent Communications |
| Hastings Technology |
Cogent Communications and Hastings Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Hastings Technology
The main advantage of trading using opposite Cogent Communications and Hastings Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, Hastings Technology 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 Hastings Technology will offset losses from the drop in Hastings Technology's long position.| Cogent Communications vs. Superior Plus Corp | Cogent Communications vs. SIVERS SEMICONDUCTORS AB | Cogent Communications vs. Norsk Hydro ASA | Cogent Communications vs. Reliance Steel Aluminum |
| Hastings Technology vs. ATRYS HEALTH SA | Hastings Technology vs. Canadian Utilities Limited | Hastings Technology vs. UNITED UTILITIES GR | Hastings Technology vs. G8 EDUCATION |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |