Correlation Between Cogent Communications and Freenet AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cogent Communications Holdings and freenet AG, you can compare the effects of market volatilities on Cogent Communications and Freenet AG 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 Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Freenet AG.
Diversification Opportunities for Cogent Communications and Freenet AG
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cogent and Freenet is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG 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 Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of Cogent Communications i.e., Cogent Communications and Freenet AG go up and down completely randomly.
Pair Corralation between Cogent Communications and Freenet AG
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to generate 1.92 times more return on investment than Freenet AG. However, Cogent Communications is 1.92 times more volatile than freenet AG. It trades about 0.05 of its potential returns per unit of risk. freenet AG is currently generating about 0.07 per unit of risk. If you would invest 5,643 in Cogent Communications Holdings on September 14, 2024 and sell it today you would earn a total of 1,607 from holding Cogent Communications Holdings or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Cogent Communications Holdings vs. freenet AG
Performance |
| Timeline |
| Cogent Communications |
| freenet AG |
Cogent Communications and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Freenet AG
The main advantage of trading using opposite Cogent Communications and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG'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 |
| Freenet AG vs. Singapore Telecommunications Limited | Freenet AG vs. Ribbon Communications | Freenet AG vs. Universal Display | Freenet AG vs. Cogent Communications Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |