Correlation Between Rogers and Supercom
Can any of the company-specific risk be diversified away by investing in both Rogers and Supercom 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 and Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers and Supercom, you can compare the effects of market volatilities on Rogers and Supercom 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 with a short position of Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers and Supercom.
Diversification Opportunities for Rogers and Supercom
Excellent diversification
The 3 months correlation between Rogers and Supercom is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rogers and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom and Rogers 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 are associated (or correlated) with Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of Rogers i.e., Rogers and Supercom go up and down completely randomly.
Pair Corralation between Rogers and Supercom
Considering the 90-day investment horizon Rogers is expected to under-perform the Supercom. But the stock apears to be less risky and, when comparing its historical volatility, Rogers is 13.29 times less risky than Supercom. The stock trades about -0.19 of its potential returns per unit of risk. The Supercom is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Supercom on October 23, 2024 and sell it today you would earn a total of 998.00 from holding Supercom or generate 290.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers vs. Supercom
Performance |
| Timeline |
| Rogers |
| Supercom |
Rogers and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers and Supercom
The main advantage of trading using opposite Rogers and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| Rogers vs. Take Two Interactive Software | Rogers vs. Copperbank Resources Corp | Rogers vs. Marimaca Copper Corp | Rogers vs. Cresud SACIF y |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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