Correlation Between Pembina Pipeline and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Rogers Communications, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Rogers Communications.
Diversification Opportunities for Pembina Pipeline and Rogers Communications
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembina and Rogers is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Pembina Pipeline 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 Pembina Pipeline Corp 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 Pembina Pipeline i.e., Pembina Pipeline and Rogers Communications go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Rogers Communications
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 1.01 times more return on investment than Rogers Communications. However, Pembina Pipeline is 1.01 times more volatile than Rogers Communications. It trades about 0.04 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.08 per unit of risk. If you would invest 3,814 in Pembina Pipeline Corp on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Pembina Pipeline Corp or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Rogers Communications
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Rogers Communications |
Pembina Pipeline and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Rogers Communications
The main advantage of trading using opposite Pembina Pipeline and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. ONEOK Inc | Pembina Pipeline vs. Superior Plus Corp | Pembina Pipeline vs. NMI Holdings | Pembina Pipeline vs. Origin Agritech |
| Rogers Communications vs. Pembina Pipeline Corp | Rogers Communications vs. EHEALTH | Rogers Communications vs. CEOTRONICS | Rogers Communications vs. FEMALE HEALTH |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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