Correlation Between Rogers Communications and G III

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

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

Diversification Opportunities for Rogers Communications and G III

-0.5

Correlation Coefficient

Rogers Communications  G III

Very good diversification

The 3 months correlation between Rogers and GI4 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Rogers Communications i.e., Rogers Communications and G III go up and down completely randomly.

Pair Corralation between Rogers Communications and G III

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.45 times more return on investment than G III. However, Rogers Communications is 2.23 times less risky than G III. It trades about 0.3 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.02 per unit of risk. If you would invest  2,170  in Rogers Communications on April 20, 2025 and sell it today you would earn a total of  670.00  from holding Rogers Communications or generate 30.88% 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.  G III Apparel Group

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.

G III Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days G III Apparel Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, G III is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Rogers Communications and G III

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

The idea behind Rogers Communications and G III Apparel Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.