Correlation Between Rogers Sugar and Extendicare

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

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

Diversification Opportunities for Rogers Sugar and Extendicare

-0.83

Correlation Coefficient

Rogers Sugar  Extendicare

Pay attention - limited upside

The 3 months correlation between Rogers and Extendicare is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Sugar and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and Rogers Sugar 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 Sugar are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of Rogers Sugar i.e., Rogers Sugar and Extendicare go up and down completely randomly.

Pair Corralation between Rogers Sugar and Extendicare

Assuming the 90 days trading horizon Rogers Sugar is expected to generate 0.31 times more return on investment than Extendicare. However, Rogers Sugar is 3.23 times less risky than Extendicare. It trades about 0.07 of its potential returns per unit of risk. Extendicare is currently generating about -0.15 per unit of risk. If you would invest  552.00  in Rogers Sugar on May 5, 2025 and sell it today you would earn a total of  12.00  from holding Rogers Sugar or generate 2.17% return on investment over 90 days.

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

Rogers Sugar  vs.  Extendicare

Rogers Sugar

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rogers Sugar are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Rogers Sugar is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Extendicare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Extendicare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Rogers Sugar and Extendicare

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

The idea behind Rogers Sugar and Extendicare 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.