Correlation Between Canso Credit and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Canso Credit 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 Canso Credit and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Credit Trust and Rogers Communications, you can compare the effects of market volatilities on Canso Credit 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 Canso Credit with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Credit and Rogers Communications.
Diversification Opportunities for Canso Credit and Rogers Communications
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canso and Rogers is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Canso Credit Trust and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Canso Credit 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 Canso Credit Trust 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 Canso Credit i.e., Canso Credit and Rogers Communications go up and down completely randomly.
Pair Corralation between Canso Credit and Rogers Communications
Assuming the 90 days trading horizon Canso Credit Trust is expected to generate 0.24 times more return on investment than Rogers Communications. However, Canso Credit Trust is 4.14 times less risky than Rogers Communications. It trades about 0.12 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.12 per unit of risk. If you would invest 1,526 in Canso Credit Trust on October 31, 2024 and sell it today you would earn a total of 63.00 from holding Canso Credit Trust or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canso Credit Trust vs. Rogers Communications
Performance |
| Timeline |
| Canso Credit Trust |
| Rogers Communications |
Canso Credit and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Credit and Rogers Communications
The main advantage of trading using opposite Canso Credit and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Credit 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.| Canso Credit vs. MINT Income Fund | Canso Credit vs. Canadian High Income | Canso Credit vs. Blue Ribbon Income | Canso Credit vs. Australian REIT Income |
| Rogers Communications vs. Canadian General Investments | Rogers Communications vs. Leading Edge Materials | Rogers Communications vs. Highwood Asset Management | Rogers Communications vs. TGS Esports |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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