Correlation Between Amdocs and Rogers Communications

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

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

Diversification Opportunities for Amdocs and Rogers Communications

-0.92

Correlation Coefficient

Amdocs  Rogers Communications

Pay attention - limited upside

The 3 months correlation between Amdocs and Rogers is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs Limited and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and Amdocs 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 Amdocs Limited are associated (or correlated) with Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of Amdocs i.e., Amdocs and Rogers Communications go up and down completely randomly.

Pair Corralation between Amdocs and Rogers Communications

Assuming the 90 days horizon Amdocs Limited is expected to under-perform the Rogers Communications. But the stock apears to be less risky and, when comparing its historical volatility, Amdocs Limited is 1.08 times less risky than Rogers Communications. The stock trades about -0.07 of its potential returns per unit of risk. The Rogers Communications is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  2,249  in Rogers Communications on May 26, 2025 and sell it today you would earn a total of  811.00  from holding Rogers Communications or generate 36.06% return on investment over 90 days.

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

Amdocs Limited  vs.  Rogers Communications

Amdocs Limited

Risk-Adjusted Performance

Weakest

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

Rogers Communications

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Communications are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, Rogers Communications reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amdocs and Rogers Communications

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

The idea behind Amdocs Limited and Rogers Communications 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.