Correlation Between Rogers Communications and VOLVO B

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

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

Diversification Opportunities for Rogers Communications and VOLVO B

-0.35

Correlation Coefficient

Rogers Communications  VOLVO B

Very good diversification

The 3 months correlation between Rogers and VOLVO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and VOLVO B UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOLVO B UNSPADR 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 VOLVO B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOLVO B UNSPADR has no effect on the direction of Rogers Communications i.e., Rogers Communications and VOLVO B go up and down completely randomly.

Pair Corralation between Rogers Communications and VOLVO B

Assuming the 90 days trading horizon Rogers Communications is expected to generate 0.69 times more return on investment than VOLVO B. However, Rogers Communications is 1.46 times less risky than VOLVO B. It trades about 0.31 of its potential returns per unit of risk. VOLVO B UNSPADR is currently generating about 0.06 per unit of risk. 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	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Rogers Communications  vs.  VOLVO B UNSPADR

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.

VOLVO B UNSPADR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in VOLVO B UNSPADR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, VOLVO B may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Rogers Communications and VOLVO B

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

The idea behind Rogers Communications and VOLVO B UNSPADR 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.