Correlation Between Primaris Retail and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Primaris Retail 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 Primaris Retail and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primaris Retail RE and Rogers Communications, you can compare the effects of market volatilities on Primaris Retail 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 Primaris Retail with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primaris Retail and Rogers Communications.
Diversification Opportunities for Primaris Retail and Rogers Communications
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Primaris and Rogers is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Primaris Retail RE and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Primaris Retail 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 Primaris Retail RE 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 Primaris Retail i.e., Primaris Retail and Rogers Communications go up and down completely randomly.
Pair Corralation between Primaris Retail and Rogers Communications
Assuming the 90 days trading horizon Primaris Retail RE is expected to generate 0.83 times more return on investment than Rogers Communications. However, Primaris Retail RE is 1.2 times less risky than Rogers Communications. It trades about 0.07 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.01 per unit of risk. If you would invest 1,198 in Primaris Retail RE on August 31, 2024 and sell it today you would earn a total of 414.00 from holding Primaris Retail RE or generate 34.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Primaris Retail RE vs. Rogers Communications
Performance |
| Timeline |
| Primaris Retail RE |
| Rogers Communications |
Primaris Retail and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primaris Retail and Rogers Communications
The main advantage of trading using opposite Primaris Retail and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primaris Retail 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.| Primaris Retail vs. Sprott Physical Gold | Primaris Retail vs. Canso Select Opportunities | Primaris Retail vs. Green Panda Capital | Primaris Retail vs. Manulife Finl Srs |
| Rogers Communications vs. Cielo Waste Solutions | Rogers Communications vs. Eros Resources Corp | Rogers Communications vs. Forstrong Global Income | Rogers Communications vs. iShares Canadian HYBrid |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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