Correlation Between Cogent Communications and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and KENEDIX OFFICE 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 Cogent Communications and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and KENEDIX OFFICE INV, you can compare the effects of market volatilities on Cogent Communications and KENEDIX OFFICE 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 Cogent Communications with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and KENEDIX OFFICE.
Diversification Opportunities for Cogent Communications and KENEDIX OFFICE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cogent and KENEDIX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and Cogent 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 Cogent Communications Holdings are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Cogent Communications i.e., Cogent Communications and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Cogent Communications and KENEDIX OFFICE
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to under-perform the KENEDIX OFFICE. In addition to that, Cogent Communications is 1.21 times more volatile than KENEDIX OFFICE INV. It trades about -0.15 of its total potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.03 per unit of volatility. If you would invest 88,500 in KENEDIX OFFICE INV on December 29, 2024 and sell it today you would earn a total of 2,500 from holding KENEDIX OFFICE INV or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cogent Communications Holdings vs. KENEDIX OFFICE INV
Performance |
Timeline |
Cogent Communications |
KENEDIX OFFICE INV |
Cogent Communications and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cogent Communications and KENEDIX OFFICE
The main advantage of trading using opposite Cogent Communications and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.Cogent Communications vs. IMPERIAL TOBACCO | Cogent Communications vs. EEDUCATION ALBERT AB | Cogent Communications vs. EMBARK EDUCATION LTD | Cogent Communications vs. Gruppo Mutuionline SpA |
KENEDIX OFFICE vs. SBA Communications Corp | KENEDIX OFFICE vs. INTERSHOP Communications Aktiengesellschaft | KENEDIX OFFICE vs. X FAB Silicon Foundries | KENEDIX OFFICE vs. FANDIFI TECHNOLOGY P |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |