Correlation Between Rogers Communications and FG Acquisition
Can any of the company-specific risk be diversified away by investing in both Rogers Communications and FG Acquisition 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 Rogers Communications and FG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers Communications and FG Acquisition Corp, you can compare the effects of market volatilities on Rogers Communications and FG Acquisition 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 Rogers Communications with a short position of FG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and FG Acquisition.
Diversification Opportunities for Rogers Communications and FG Acquisition
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rogers and FGAA-U is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and FG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Acquisition Corp and Rogers 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 Rogers Communications are associated (or correlated) with FG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Acquisition Corp has no effect on the direction of Rogers Communications i.e., Rogers Communications and FG Acquisition go up and down completely randomly.
Pair Corralation between Rogers Communications and FG Acquisition
Assuming the 90 days trading horizon Rogers Communications is expected to under-perform the FG Acquisition. In addition to that, Rogers Communications is 2.45 times more volatile than FG Acquisition Corp. It trades about 0.0 of its total potential returns per unit of risk. FG Acquisition Corp is currently generating about 0.07 per unit of volatility. If you would invest 1,020 in FG Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 158.00 from holding FG Acquisition Corp or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Rogers Communications vs. FG Acquisition Corp
Performance |
| Timeline |
| Rogers Communications |
| FG Acquisition Corp |
Rogers Communications and FG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers Communications and FG Acquisition
The main advantage of trading using opposite Rogers Communications and FG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications position performs unexpectedly, FG Acquisition 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 FG Acquisition will offset losses from the drop in FG Acquisition's long position.| Rogers Communications vs. Apple Inc CDR | Rogers Communications vs. NVIDIA CDR | Rogers Communications vs. Microsoft Corp CDR | Rogers Communications vs. Amazon CDR |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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