Correlation Between CI Global and CI Global
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By analyzing existing cross correlation between CI Global Health and CI Global Alpha, you can compare the effects of market volatilities on CI Global and CI Global 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 CI Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and CI Global.
Diversification Opportunities for CI Global and CI Global
Pay attention - limited upside
The 3 months correlation between 0P000070H9 and 0P000070HA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Health and CI Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Alpha and CI Global 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 CI Global Health are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Alpha has no effect on the direction of CI Global i.e., CI Global and CI Global go up and down completely randomly.
Pair Corralation between CI Global and CI Global
Assuming the 90 days trading horizon CI Global Health is expected to under-perform the CI Global. But the fund apears to be less risky and, when comparing its historical volatility, CI Global Health is 1.86 times less risky than CI Global. The fund trades about -0.17 of its potential returns per unit of risk. The CI Global Alpha is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 8,947 in CI Global Alpha on August 25, 2024 and sell it today you would earn a total of 1,344 from holding CI Global Alpha or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Global Health vs. CI Global Alpha
Performance |
| Timeline |
| CI Global Health |
| CI Global Alpha |
CI Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and CI Global
The main advantage of trading using opposite CI Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.The idea behind CI Global Health and CI Global Alpha 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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