Correlation Between Rogers Communications and Americold Realty

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

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

Diversification Opportunities for Rogers Communications and Americold Realty

0.63

Correlation Coefficient

Rogers Communications  Americold Realty

Poor diversification

The 3 months correlation between Rogers and Americold is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Americold Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americold Realty Trust 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 Americold Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americold Realty Trust has no effect on the direction of Rogers Communications i.e., Rogers Communications and Americold Realty go up and down completely randomly.

Pair Corralation between Rogers Communications and Americold Realty

Considering the 90-day investment horizon Rogers Communications is expected to generate 0.98 times more return on investment than Americold Realty. However, Rogers Communications is 1.02 times less risky than Americold Realty. It trades about -0.03 of its potential returns per unit of risk. Americold Realty Trust is currently generating about -0.1 per unit of risk. If you would invest  4,045  in Rogers Communications on June 29, 2024 and sell it today you would lose (31.00) from holding Rogers Communications or give up 0.77% of portfolio value over 90 days.

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

Rogers Communications  vs.  Americold Realty Trust

Rogers Communications

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Rogers Communications may actually be approaching a critical reversion point that can send shares even higher in October 2024.

Americold Realty Trust

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Americold Realty Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Americold Realty may actually be approaching a critical reversion point that can send shares even higher in October 2024.

Pair Trading with Rogers Communications and Americold Realty

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

The idea behind Rogers Communications and Americold Realty Trust 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.