Correlation Between Cogeco Communications and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and FingerMotion 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 FingerMotion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and FingerMotion, you can compare the effects of market volatilities on Cogeco Communications and FingerMotion 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 FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and FingerMotion.
Diversification Opportunities for Cogeco Communications and FingerMotion
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cogeco and FingerMotion is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion 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 FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and FingerMotion go up and down completely randomly.
Pair Corralation between Cogeco Communications and FingerMotion
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.19 times more return on investment than FingerMotion. However, Cogeco Communications is 5.17 times less risky than FingerMotion. It trades about 0.12 of its potential returns per unit of risk. FingerMotion is currently generating about -0.13 per unit of risk. If you would invest 6,485 in Cogeco Communications on September 4, 2025 and sell it today you would earn a total of 179.00 from holding Cogeco Communications or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cogeco Communications vs. FingerMotion
Performance |
| Timeline |
| Cogeco Communications |
| FingerMotion |
Cogeco Communications and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and FingerMotion
The main advantage of trading using opposite Cogeco Communications and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.| Cogeco Communications vs. Western Investment | Cogeco Communications vs. Economic Investment Trust | Cogeco Communications vs. Nexoptic Technology Corp | Cogeco Communications vs. Algonquin Power Utilities |
| FingerMotion vs. Kossan Rubber Industries | FingerMotion vs. Yulong Eco Materials | FingerMotion vs. Neo Performance Materials | FingerMotion vs. Martin Marietta Materials |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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