Correlation Between Rogers Communications and Transatlantic Mining

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

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

Diversification Opportunities for Rogers Communications and Transatlantic Mining

-0.36

Correlation Coefficient

Rogers Communications  Transatlantic Mining

Very good diversification

The 3 months correlation between Rogers and Transatlantic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Transatlantic Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transatlantic Mining 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 Transatlantic Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transatlantic Mining Corp has no effect on the direction of Rogers Communications i.e., Rogers Communications and Transatlantic Mining go up and down completely randomly.

Pair Corralation between Rogers Communications and Transatlantic Mining

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.1 times more return on investment than Transatlantic Mining. However, Rogers Communications is 9.85 times less risky than Transatlantic Mining. It trades about 0.28 of its potential returns per unit of risk. Transatlantic Mining Corp is currently generating about 0.02 per unit of risk. If you would invest  3,901  in Rogers Communications on April 24, 2025 and sell it today you would earn a total of  950.00  from holding Rogers Communications or generate 24.35% return on investment over 90 days.

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

Rogers Communications  vs.  Transatlantic Mining Corp

Rogers Communications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 21 (%) 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.

Transatlantic Mining Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Transatlantic Mining Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Transatlantic Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rogers Communications and Transatlantic Mining

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

The idea behind Rogers Communications and Transatlantic Mining 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.