Correlation Between Telenor ASA and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both Telenor ASA 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 Telenor ASA and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA ADR and Rogers Communications, you can compare the effects of market volatilities on Telenor ASA 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 Telenor ASA with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Rogers Communications.
Diversification Opportunities for Telenor ASA and Rogers Communications
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Telenor and Rogers is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA ADR and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Telenor ASA 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 Telenor ASA ADR 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 Telenor ASA i.e., Telenor ASA and Rogers Communications go up and down completely randomly.
Pair Corralation between Telenor ASA and Rogers Communications
Assuming the 90 days horizon Telenor ASA ADR is expected to generate 0.58 times more return on investment than Rogers Communications. However, Telenor ASA ADR is 1.72 times less risky than Rogers Communications. It trades about 0.53 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.17 per unit of risk. If you would invest 1,114 in Telenor ASA ADR on November 1, 2024 and sell it today you would earn a total of 116.00 from holding Telenor ASA ADR or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telenor ASA ADR vs. Rogers Communications
Performance |
| Timeline |
| Telenor ASA ADR |
| Rogers Communications |
Telenor ASA and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Rogers Communications
The main advantage of trading using opposite Telenor ASA and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA 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.| Telenor ASA vs. PCCW Limited | Telenor ASA vs. Hellenic Telecommunications Org | Telenor ASA vs. Telefonica SA ADR | Telenor ASA vs. XL Axiata Tbk |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |