Correlation Between Rogers Communications and VerticalScope Holdings

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

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

Diversification Opportunities for Rogers Communications and VerticalScope Holdings

-0.59

Correlation Coefficient

Rogers Communications  VerticalScope Holdings

Excellent diversification

The 3 months correlation between Rogers and VerticalScope is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and VerticalScope Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VerticalScope Holdings 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 VerticalScope Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VerticalScope Holdings has no effect on the direction of Rogers Communications i.e., Rogers Communications and VerticalScope Holdings go up and down completely randomly.

Pair Corralation between Rogers Communications and VerticalScope Holdings

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.32 times more return on investment than VerticalScope Holdings. However, Rogers Communications is 3.09 times less risky than VerticalScope Holdings. It trades about 0.26 of its potential returns per unit of risk. VerticalScope Holdings is currently generating about -0.05 per unit of risk. If you would invest  3,941  in Rogers Communications on April 22, 2025 and sell it today you would earn a total of  909.00  from holding Rogers Communications or generate 23.07% return on investment over 90 days.

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

Rogers Communications  vs.  VerticalScope Holdings

Rogers Communications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Rogers Communications unveiled solid returns over the last few months and may actually be approaching a breakup point.

VerticalScope Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days VerticalScope Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Rogers Communications and VerticalScope Holdings

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

The idea behind Rogers Communications and VerticalScope 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.