Correlation Between Rogers Communications and Mastercard

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

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

Diversification Opportunities for Rogers Communications and Mastercard

-0.31

Correlation Coefficient

Rogers Communications  Mastercard

Very good diversification

The 3 months correlation between Rogers and Mastercard is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard 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 Mastercard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastercard has no effect on the direction of Rogers Communications i.e., Rogers Communications and Mastercard go up and down completely randomly.

Pair Corralation between Rogers Communications and Mastercard

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.98 times more return on investment than Mastercard. However, Rogers Communications is 1.02 times less risky than Mastercard. It trades about 0.3 of its potential returns per unit of risk. Mastercard is currently generating about 0.04 per unit of risk. If you would invest  2,170  in Rogers Communications on April 22, 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

Rogers Communications  vs.  Mastercard

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.

Mastercard

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mastercard are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Mastercard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rogers Communications and Mastercard

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

The idea behind Rogers Communications and Mastercard 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.