Correlation Between Cogeco Communications and Ag Growth
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Ag Growth 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 Cogeco Communications and Ag Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Ag Growth International, you can compare the effects of market volatilities on Cogeco Communications and Ag Growth 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 Cogeco Communications with a short position of Ag Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Ag Growth.
Diversification Opportunities for Cogeco Communications and Ag Growth
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cogeco and AFN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Ag Growth International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ag Growth International and Cogeco Communications 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 Cogeco Communications are associated (or correlated) with Ag Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ag Growth International has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Ag Growth go up and down completely randomly.
Pair Corralation between Cogeco Communications and Ag Growth
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.26 times more return on investment than Ag Growth. However, Cogeco Communications is 3.78 times less risky than Ag Growth. It trades about 0.09 of its potential returns per unit of risk. Ag Growth International is currently generating about -0.14 per unit of risk. If you would invest 6,306 in Cogeco Communications on September 1, 2025 and sell it today you would earn a total of 524.00 from holding Cogeco Communications or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. Ag Growth International
Performance |
| Timeline |
| Cogeco Communications |
| Ag Growth International |
Cogeco Communications and Ag Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Ag Growth
The main advantage of trading using opposite Cogeco Communications and Ag Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Ag Growth 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 Ag Growth will offset losses from the drop in Ag Growth's long position.| Cogeco Communications vs. Ramp Metals | Cogeco Communications vs. Mako Mining Corp | Cogeco Communications vs. Primaris Retail RE | Cogeco Communications vs. Black Iron |
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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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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