Correlation Between Rogers Communications and Libero Copper

Can any of the company-specific risk be diversified away by investing in both Rogers Communications and Libero Copper 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 Rogers Communications and Libero Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rogers Communications and Libero Copper Corp, you can compare the effects of market volatilities on Rogers Communications and Libero Copper 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 Rogers Communications with a short position of Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and Libero Copper.

Diversification Opportunities for Rogers Communications and Libero Copper

0.81

Correlation Coefficient

Rogers Communications  Libero Copper

Very poor diversification

The 3 months correlation between Rogers and Libero is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper Corp and Rogers 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 Rogers Communications are associated (or correlated) with Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of Rogers Communications i.e., Rogers Communications and Libero Copper go up and down completely randomly.

Pair Corralation between Rogers Communications and Libero Copper

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.41 times more return on investment than Libero Copper. However, Rogers Communications is 2.47 times less risky than Libero Copper. It trades about 0.01 of its potential returns per unit of risk. Libero Copper Corp is currently generating about -0.11 per unit of risk. If you would invest  4,425  in Rogers Communications on December 4, 2024 and sell it today you would lose (3.00) from holding Rogers Communications or give up 0.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Rogers Communications  vs.  Libero Copper Corp

Rogers Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rogers Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Libero Copper Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Libero Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Rogers Communications and Libero Copper

The main advantage of trading using opposite Rogers Communications and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper's long position.

The idea behind Rogers Communications and Libero Copper Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.