Correlation Between Rogers Communications and Chegg

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

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

Diversification Opportunities for Rogers Communications and Chegg

0.59

Correlation Coefficient

Rogers Communications  Chegg

Very weak diversification

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

Pair Corralation between Rogers Communications and Chegg

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.26 times more return on investment than Chegg. However, Rogers Communications is 3.91 times less risky than Chegg. It trades about -0.03 of its potential returns per unit of risk. Chegg Inc is currently generating about -0.04 per unit of risk. If you would invest  3,684  in Rogers Communications on April 22, 2025 and sell it today you would lose (844.00) from holding Rogers Communications or give up 22.91% of portfolio value over 90 days.

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

Rogers Communications  vs.  Chegg Inc

Rogers Communications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Rogers Communications reported solid returns over the last few months and may actually be approaching a breakup point.

Chegg Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chegg Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Chegg reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rogers Communications and Chegg

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

The idea behind Rogers Communications and Chegg Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.