Correlation Between Rogers Communications and Pearson Plc

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

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

Diversification Opportunities for Rogers Communications and Pearson Plc

0.0

Correlation Coefficient

Rogers Communications  Pearson Plc

Pay attention - limited upside

The 3 months correlation between Rogers and Pearson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Pearson plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pearson plc 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 Pearson Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pearson plc has no effect on the direction of Rogers Communications i.e., Rogers Communications and Pearson Plc go up and down completely randomly.

Pair Corralation between Rogers Communications and Pearson Plc

If you would invest  2,170  in Rogers Communications on April 24, 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	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Rogers Communications  vs.  Pearson plc

Rogers Communications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 24 (%) 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.

Pearson plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pearson plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Pearson Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rogers Communications and Pearson Plc

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

The idea behind Rogers Communications and Pearson plc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.