Correlation Between Cogent Communications and NEWELL RUBBERMAID
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID , you can compare the effects of market volatilities on Cogent Communications and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and NEWELL RUBBERMAID.
Diversification Opportunities for Cogent Communications and NEWELL RUBBERMAID
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cogent and NEWELL is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and NEWELL RUBBERMAID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL RUBBERMAID has no effect on the direction of Cogent Communications i.e., Cogent Communications and NEWELL RUBBERMAID go up and down completely randomly.
Pair Corralation between Cogent Communications and NEWELL RUBBERMAID
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to generate 0.62 times more return on investment than NEWELL RUBBERMAID. However, Cogent Communications Holdings is 1.6 times less risky than NEWELL RUBBERMAID. It trades about 0.06 of its potential returns per unit of risk. NEWELL RUBBERMAID is currently generating about 0.0 per unit of risk. If you would invest 4,631 in Cogent Communications Holdings on September 2, 2024 and sell it today you would earn a total of 3,069 from holding Cogent Communications Holdings or generate 66.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. NEWELL RUBBERMAID
Performance |
| Timeline |
| Cogent Communications |
| NEWELL RUBBERMAID |
Cogent Communications and NEWELL RUBBERMAID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and NEWELL RUBBERMAID
The main advantage of trading using opposite Cogent Communications and NEWELL RUBBERMAID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, NEWELL RUBBERMAID 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 NEWELL RUBBERMAID will offset losses from the drop in NEWELL RUBBERMAID's long position.| Cogent Communications vs. Calibre Mining Corp | Cogent Communications vs. FUYO GENERAL LEASE | Cogent Communications vs. MINCO SILVER | Cogent Communications vs. Apollo Investment Corp |
| NEWELL RUBBERMAID vs. Hitachi Construction Machinery | NEWELL RUBBERMAID vs. Sterling Construction | NEWELL RUBBERMAID vs. Titan Machinery | NEWELL RUBBERMAID vs. TITAN MACHINERY |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |