Correlation Between Cogeco Communications and Global Crossing
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Global Crossing 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 Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Global Crossing Airlines, you can compare the effects of market volatilities on Cogeco Communications and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Global Crossing.
Diversification Opportunities for Cogeco Communications and Global Crossing
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogeco and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Global Crossing go up and down completely randomly.
Pair Corralation between Cogeco Communications and Global Crossing
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 0.43 times more return on investment than Global Crossing. However, Cogeco Communications is 2.31 times less risky than Global Crossing. It trades about 0.06 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.0 per unit of risk. If you would invest 6,366 in Cogeco Communications on September 8, 2025 and sell it today you would earn a total of 341.00 from holding Cogeco Communications or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogeco Communications vs. Global Crossing Airlines
Performance |
| Timeline |
| Cogeco Communications |
| Global Crossing Airlines |
Cogeco Communications and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Global Crossing
The main advantage of trading using opposite Cogeco Communications and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.| Cogeco Communications vs. Computer Modelling Group | Cogeco Communications vs. Perseus Mining | Cogeco Communications vs. Arbor Metals Corp | Cogeco Communications vs. Nicola Mining |
| Global Crossing vs. Netflix Inc CDR | Global Crossing vs. NVIDIA CDR | Global Crossing vs. Nvidia CDR | Global Crossing vs. Apple Inc CDR |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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