Correlation Between Rogers Communications and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Rogers Communications and Haier Smart 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 Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers Communications and Haier Smart Home, you can compare the effects of market volatilities on Rogers Communications and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and Haier Smart.
Diversification Opportunities for Rogers Communications and Haier Smart
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rogers and Haier is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Rogers Communications i.e., Rogers Communications and Haier Smart go up and down completely randomly.
Pair Corralation between Rogers Communications and Haier Smart
Assuming the 90 days trading horizon Rogers Communications is expected to under-perform the Haier Smart. But the stock apears to be less risky and, when comparing its historical volatility, Rogers Communications is 1.41 times less risky than Haier Smart. The stock trades about -0.05 of its potential returns per unit of risk. The Haier Smart Home is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Haier Smart Home on November 27, 2024 and sell it today you would earn a total of 80.00 from holding Haier Smart Home or generate 73.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers Communications vs. Haier Smart Home
Performance |
| Timeline |
| Rogers Communications |
| Haier Smart Home |
Rogers Communications and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers Communications and Haier Smart
The main advantage of trading using opposite Rogers Communications and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Rogers Communications vs. Perseus Mining Limited | Rogers Communications vs. Coeur Mining | Rogers Communications vs. Yuexiu Transport Infrastructure | Rogers Communications vs. Fukuyama Transporting Co |
| Haier Smart vs. Aedas Homes SA | Haier Smart vs. China Railway Construction | Haier Smart vs. Penta Ocean Construction Co | Haier Smart vs. Focus Home Interactive |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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