Correlation Between UPS CDR and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both UPS CDR 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 UPS CDR and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UPS CDR and Rogers Communications, you can compare the effects of market volatilities on UPS CDR 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 UPS CDR with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of UPS CDR and Rogers Communications.
Diversification Opportunities for UPS CDR and Rogers Communications
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between UPS and Rogers is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding UPS CDR and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and UPS CDR 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 UPS CDR 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 UPS CDR i.e., UPS CDR and Rogers Communications go up and down completely randomly.
Pair Corralation between UPS CDR and Rogers Communications
Assuming the 90 days trading horizon UPS CDR is expected to generate 1.19 times more return on investment than Rogers Communications. However, UPS CDR is 1.19 times more volatile than Rogers Communications. It trades about -0.02 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.03 per unit of risk. If you would invest 1,897 in UPS CDR on September 14, 2024 and sell it today you would lose (211.00) from holding UPS CDR or give up 11.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
UPS CDR vs. Rogers Communications
Performance |
| Timeline |
| UPS CDR |
| Rogers Communications |
UPS CDR and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UPS CDR and Rogers Communications
The main advantage of trading using opposite UPS CDR and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UPS CDR 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.| UPS CDR vs. Maple Leaf Foods | UPS CDR vs. Partners Value Investments | UPS CDR vs. HOME DEPOT CDR | UPS CDR vs. Canadian General Investments |
| Rogers Communications vs. UPS CDR | Rogers Communications vs. HOME DEPOT CDR | Rogers Communications vs. UnitedHealth Group CDR | Rogers Communications vs. Costco Wholesale Corp |
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.
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