Correlation Between TUI AG and Cogent Communications
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By analyzing existing cross correlation between TUI AG and Cogent Communications Holdings, you can compare the effects of market volatilities on TUI AG and Cogent 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 TUI AG with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of TUI AG and Cogent Communications.
Diversification Opportunities for TUI AG and Cogent Communications
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TUI and Cogent is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding TUI AG and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and TUI AG 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 TUI AG are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of TUI AG i.e., TUI AG and Cogent Communications go up and down completely randomly.
Pair Corralation between TUI AG and Cogent Communications
Assuming the 90 days trading horizon TUI AG is expected to under-perform the Cogent Communications. But the stock apears to be less risky and, when comparing its historical volatility, TUI AG is 1.01 times less risky than Cogent Communications. The stock trades about 0.0 of its potential returns per unit of risk. The Cogent Communications Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,493 in Cogent Communications Holdings on September 3, 2024 and sell it today you would earn a total of 2,207 from holding Cogent Communications Holdings or generate 40.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TUI AG vs. Cogent Communications Holdings
Performance |
| Timeline |
| TUI AG |
| Cogent Communications |
TUI AG and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TUI AG and Cogent Communications
The main advantage of trading using opposite TUI AG and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TUI AG position performs unexpectedly, Cogent 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| TUI AG vs. TIANDE CHEMICAL | TUI AG vs. Mitsubishi Gas Chemical | TUI AG vs. NISSAN CHEMICAL IND | TUI AG vs. Soken Chemical Engineering |
| Cogent Communications vs. T Mobile | Cogent Communications vs. China Mobile Limited | Cogent Communications vs. ATT Inc | Cogent Communications vs. Nippon Telegraph and |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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