Correlation Between COMPUTERSHARE and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both COMPUTERSHARE and Cogent 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 COMPUTERSHARE and Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMPUTERSHARE and Cogent Communications Holdings, you can compare the effects of market volatilities on COMPUTERSHARE and Cogent 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 COMPUTERSHARE with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMPUTERSHARE and Cogent Communications.
Diversification Opportunities for COMPUTERSHARE and Cogent Communications
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COMPUTERSHARE and Cogent is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding COMPUTERSHARE and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and COMPUTERSHARE 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 COMPUTERSHARE are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of COMPUTERSHARE i.e., COMPUTERSHARE and Cogent Communications go up and down completely randomly.
Pair Corralation between COMPUTERSHARE and Cogent Communications
Assuming the 90 days trading horizon COMPUTERSHARE is expected to generate 0.84 times more return on investment than Cogent Communications. However, COMPUTERSHARE is 1.19 times less risky than Cogent Communications. It trades about 0.53 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about 0.14 per unit of risk. If you would invest 1,590 in COMPUTERSHARE on August 27, 2024 and sell it today you would earn a total of 370.00 from holding COMPUTERSHARE or generate 23.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMPUTERSHARE vs. Cogent Communications Holdings
Performance |
| Timeline |
| COMPUTERSHARE |
| Cogent Communications |
COMPUTERSHARE and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMPUTERSHARE and Cogent Communications
The main advantage of trading using opposite COMPUTERSHARE and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMPUTERSHARE position performs unexpectedly, Cogent 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| COMPUTERSHARE vs. Apple Inc | COMPUTERSHARE vs. Apple Inc | COMPUTERSHARE vs. Apple Inc | COMPUTERSHARE vs. Microsoft |
| Cogent Communications vs. T Mobile | Cogent Communications vs. ATT Inc | Cogent Communications vs. Deutsche Telekom AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |