Correlation Between SwissCom and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both SwissCom 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 SwissCom and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SwissCom AG and Rogers Communications, you can compare the effects of market volatilities on SwissCom 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 SwissCom with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SwissCom and Rogers Communications.
Diversification Opportunities for SwissCom and Rogers Communications
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SwissCom and Rogers is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SwissCom AG and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and SwissCom 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 SwissCom AG 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 SwissCom i.e., SwissCom and Rogers Communications go up and down completely randomly.
Pair Corralation between SwissCom and Rogers Communications
Assuming the 90 days horizon SwissCom AG is expected to generate 0.75 times more return on investment than Rogers Communications. However, SwissCom AG is 1.34 times less risky than Rogers Communications. It trades about 0.01 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.06 per unit of risk. If you would invest 5,955 in SwissCom AG on December 16, 2024 and sell it today you would earn a total of 22.00 from holding SwissCom AG or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SwissCom AG vs. Rogers Communications
Performance |
| Timeline |
| SwissCom AG |
| Rogers Communications |
SwissCom and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SwissCom and Rogers Communications
The main advantage of trading using opposite SwissCom and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SwissCom 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.| SwissCom vs. Telecom Argentina SA | ||
| SwissCom vs. Rogers Communications | ||
| SwissCom vs. Magyar Telekom Plc | ||
| SwissCom vs. Hellenic Telecommunications Org |
| Rogers Communications vs. BCE Inc | ||
| Rogers Communications vs. America Movil SAB | ||
| Rogers Communications vs. Telus Corp | ||
| Rogers Communications vs. Vodafone Group PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |