Correlation Between Roku and Quebecor
Can any of the company-specific risk be diversified away by investing in both Roku and Quebecor 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 Roku and Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and Quebecor, you can compare the effects of market volatilities on Roku and Quebecor 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 Roku with a short position of Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Quebecor.
Diversification Opportunities for Roku and Quebecor
Excellent diversification
The 3 months correlation between Roku and Quebecor is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor and Roku 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 Roku Inc are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Roku i.e., Roku and Quebecor go up and down completely randomly.
Pair Corralation between Roku and Quebecor
Given the investment horizon of 90 days Roku is expected to generate 2.22 times less return on investment than Quebecor. In addition to that, Roku is 2.97 times more volatile than Quebecor. It trades about 0.02 of its total potential returns per unit of risk. Quebecor is currently generating about 0.1 per unit of volatility. If you would invest 2,053 in Quebecor on January 18, 2024 and sell it today you would earn a total of 297.00 from holding Quebecor or generate 14.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 76.42% |
Values | Daily Returns |
Roku Inc vs. Quebecor
Performance |
Timeline |
Roku Inc |
Quebecor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Roku and Quebecor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Roku and Quebecor
The main advantage of trading using opposite Roku and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.The idea behind Roku Inc and Quebecor 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.Quebecor vs. Telus Corp | Quebecor vs. Rogers Communications | Quebecor vs. BCE Inc | Quebecor vs. Globalstar |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Transaction History View history of all your transactions and understand their impact on performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |