Correlation Between Extendicare and Rogers Sugar

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

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

Diversification Opportunities for Extendicare and Rogers Sugar

-0.44

Correlation Coefficient

Extendicare  Rogers Sugar

Very good diversification

The 3 months correlation between Extendicare and Rogers is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Extendicare and Rogers Sugar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Sugar and Extendicare 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 Extendicare are associated (or correlated) with Rogers Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Sugar has no effect on the direction of Extendicare i.e., Extendicare and Rogers Sugar go up and down completely randomly.

Pair Corralation between Extendicare and Rogers Sugar

Assuming the 90 days trading horizon Extendicare is expected to under-perform the Rogers Sugar. In addition to that, Extendicare is 2.96 times more volatile than Rogers Sugar. It trades about -0.03 of its total potential returns per unit of risk. Rogers Sugar is currently generating about 0.11 per unit of volatility. If you would invest  551.00  in Rogers Sugar on April 25, 2025 and sell it today you would earn a total of  20.00  from holding Rogers Sugar or generate 3.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Extendicare  vs.  Rogers Sugar

Extendicare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Extendicare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Extendicare is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Rogers Sugar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Sugar are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Rogers Sugar is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Extendicare and Rogers Sugar

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

The idea behind Extendicare and Rogers Sugar 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.