Correlation Between CI Global and RBC Canadian
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By analyzing existing cross correlation between CI Global Alpha and RBC Canadian Equity, you can compare the effects of market volatilities on CI Global and RBC Canadian 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 RBC Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and RBC Canadian.
Diversification Opportunities for CI Global and RBC Canadian
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P000070HA and RBC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Alpha and RBC Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Canadian Equity 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 Alpha are associated (or correlated) with RBC Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Canadian Equity has no effect on the direction of CI Global i.e., CI Global and RBC Canadian go up and down completely randomly.
Pair Corralation between CI Global and RBC Canadian
Assuming the 90 days trading horizon CI Global Alpha is expected to generate 3.97 times more return on investment than RBC Canadian. However, CI Global is 3.97 times more volatile than RBC Canadian Equity. It trades about 0.24 of its potential returns per unit of risk. RBC Canadian Equity is currently generating about 0.17 per unit of risk. If you would invest 10,391 in CI Global Alpha on September 15, 2024 and sell it today you would earn a total of 693.00 from holding CI Global Alpha or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Global Alpha vs. RBC Canadian Equity
Performance |
| Timeline |
| CI Global Alpha |
| RBC Canadian Equity |
CI Global and RBC Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and RBC Canadian
The main advantage of trading using opposite CI Global and RBC Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, RBC Canadian 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 RBC Canadian will offset losses from the drop in RBC Canadian's long position.| CI Global vs. CI Signature Cat | CI Global vs. CI Signature Cat | CI Global vs. RBC Global Technology | CI Global vs. Fidelity Technology Innovators |
| RBC Canadian vs. CI Synergy American | RBC Canadian vs. PHN Canadian Equity | RBC Canadian vs. CI Global Alpha | RBC Canadian vs. TD Comfort Aggressive |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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