Correlation Between CDSPI Petite and Bloom Select
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By analyzing existing cross correlation between CDSPI petite cap and Bloom Select Income, you can compare the effects of market volatilities on CDSPI Petite and Bloom Select 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 CDSPI Petite with a short position of Bloom Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI Petite and Bloom Select.
Diversification Opportunities for CDSPI Petite and Bloom Select
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDSPI and Bloom is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI petite cap and Bloom Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Select Income and CDSPI Petite 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 CDSPI petite cap are associated (or correlated) with Bloom Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Select Income has no effect on the direction of CDSPI Petite i.e., CDSPI Petite and Bloom Select go up and down completely randomly.
Pair Corralation between CDSPI Petite and Bloom Select
Assuming the 90 days trading horizon CDSPI petite cap is expected to generate 0.94 times more return on investment than Bloom Select. However, CDSPI petite cap is 1.07 times less risky than Bloom Select. It trades about 0.27 of its potential returns per unit of risk. Bloom Select Income is currently generating about 0.16 per unit of risk. If you would invest 7,112 in CDSPI petite cap on October 28, 2024 and sell it today you would earn a total of 304.00 from holding CDSPI petite cap or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CDSPI petite cap vs. Bloom Select Income
Performance |
| Timeline |
| CDSPI petite cap |
| Bloom Select Income |
CDSPI Petite and Bloom Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI Petite and Bloom Select
The main advantage of trading using opposite CDSPI Petite and Bloom Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI Petite position performs unexpectedly, Bloom Select 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 Bloom Select will offset losses from the drop in Bloom Select's long position.| CDSPI Petite vs. iShares Canadian HYBrid | CDSPI Petite vs. Altagas Cum Red | CDSPI Petite vs. European Residential Real | CDSPI Petite vs. iShares Fundamental Hedged |
| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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