Correlation Between Rogers Communications and Rubellite Energy

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

By analyzing existing cross correlation between Rogers Communications and Rubellite Energy, you can compare the effects of market volatilities on Rogers Communications and Rubellite Energy 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 Rubellite Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and Rubellite Energy.

Diversification Opportunities for Rogers Communications and Rubellite Energy

0.03

Correlation Coefficient

Rogers Communications  Rubellite Energy

Significant diversification

The 3 months correlation between Rogers and Rubellite is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Rubellite Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubellite Energy 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 Rubellite Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubellite Energy has no effect on the direction of Rogers Communications i.e., Rogers Communications and Rubellite Energy go up and down completely randomly.

Pair Corralation between Rogers Communications and Rubellite Energy

Assuming the 90 days trading horizon Rogers Communications is expected to under-perform the Rubellite Energy. But the stock apears to be less risky and, when comparing its historical volatility, Rogers Communications is 1.65 times less risky than Rubellite Energy. The stock trades about -0.15 of its potential returns per unit of risk. The Rubellite Energy is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  208.00  in Rubellite Energy on December 4, 2024 and sell it today you would lose (31.00) from holding Rubellite Energy or give up 14.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Rogers Communications  vs.  Rubellite Energy

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 unfluctuating 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.

Rubellite Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rubellite Energy 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Rogers Communications and Rubellite Energy

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

The idea behind Rogers Communications and Rubellite Energy 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.