Correlation Between QUEEN S and Cogent Communications

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

Diversification Opportunities for QUEEN S and Cogent Communications

QUEENCogentDiversified AwayQUEENCogentDiversified Away100%
0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between QUEEN and Cogent is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and QUEEN S 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 QUEEN S ROAD are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of QUEEN S i.e., QUEEN S and Cogent Communications go up and down completely randomly.

Pair Corralation between QUEEN S and Cogent Communications

Assuming the 90 days horizon QUEEN S ROAD is expected to under-perform the Cogent Communications. In addition to that, QUEEN S is 1.44 times more volatile than Cogent Communications Holdings. It trades about -0.07 of its total potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.04 per unit of volatility. If you would invest  7,200  in Cogent Communications Holdings on October 26, 2024 and sell it today you would lose (100.00) from holding Cogent Communications Holdings or give up 1.39% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

QUEEN S ROAD  vs.  Cogent Communications Holdings

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510
JavaScript chart by amCharts 3.21.1547U OGM1
       Timeline  
QUEEN S ROAD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4.44.64.855.25.4
Cogent Communications 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cogent Communications Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Cogent Communications is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7072747678

QUEEN S and Cogent Communications Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.23-9.91-6.59-3.270.03.276.69.9213.25 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.1547U OGM1
       Returns  

Pair Trading with QUEEN S and Cogent Communications

The main advantage of trading using opposite QUEEN S and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.
The idea behind QUEEN S ROAD and Cogent Communications Holdings 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.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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