Correlation Between Cogeco Communications and Mayfair Acquisition

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Can any of the company-specific risk be diversified away by investing in both Cogeco Communications and Mayfair Acquisition 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 Mayfair Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Mayfair Acquisition, you can compare the effects of market volatilities on Cogeco Communications and Mayfair Acquisition 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 Mayfair Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Mayfair Acquisition.

Diversification Opportunities for Cogeco Communications and Mayfair Acquisition

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cogeco and Mayfair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications and Mayfair Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Acquisition 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 Mayfair Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Acquisition has no effect on the direction of Cogeco Communications i.e., Cogeco Communications and Mayfair Acquisition go up and down completely randomly.

Pair Corralation between Cogeco Communications and Mayfair Acquisition

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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Cogeco Communications  vs.  Mayfair Acquisition

 Performance 
       Timeline  
Cogeco Communications 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cogeco Communications are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cogeco Communications is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Mayfair Acquisition 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Mayfair Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Mayfair Acquisition is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cogeco Communications and Mayfair Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cogeco Communications and Mayfair Acquisition

The main advantage of trading using opposite Cogeco Communications and Mayfair Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications position performs unexpectedly, Mayfair Acquisition 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 Mayfair Acquisition will offset losses from the drop in Mayfair Acquisition's long position.
The idea behind Cogeco Communications and Mayfair Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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