Correlation Between Cogeco Communications and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Advanced Micro 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 Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Advanced Micro Devices, you can compare the effects of market volatilities on Cogeco Communications and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Advanced Micro.
Diversification Opportunities for Cogeco Communications and Advanced Micro
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cogeco and Advanced is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Advanced Micro go up and down completely randomly.
Pair Corralation between Cogeco Communications and Advanced Micro
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 17.7 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Cogeco Communications is 2.69 times less risky than Advanced Micro. It trades about 0.02 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,217 in Advanced Micro Devices on September 2, 2025 and sell it today you would earn a total of 1,797 from holding Advanced Micro Devices or generate 81.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. Advanced Micro Devices
Performance |
| Timeline |
| Cogeco Communications |
| Advanced Micro Devices |
Cogeco Communications and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Advanced Micro
The main advantage of trading using opposite Cogeco Communications and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro'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 |
| Advanced Micro vs. Super Micro Computer, | Advanced Micro vs. Omineca Mining and | Advanced Micro vs. Getty Copper | Advanced Micro vs. Marimaca Copper 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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