Correlation Between CDSPI Petite and IShares Canadian
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By analyzing existing cross correlation between CDSPI petite cap and iShares Canadian HYBrid, you can compare the effects of market volatilities on CDSPI Petite and IShares 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 CDSPI Petite with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI Petite and IShares Canadian.
Diversification Opportunities for CDSPI Petite and IShares Canadian
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CDSPI and IShares is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI petite cap and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid 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 IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of CDSPI Petite i.e., CDSPI Petite and IShares Canadian go up and down completely randomly.
Pair Corralation between CDSPI Petite and IShares Canadian
Assuming the 90 days trading horizon CDSPI petite cap is expected to generate 2.61 times more return on investment than IShares Canadian. However, CDSPI Petite is 2.61 times more volatile than iShares Canadian HYBrid. It trades about 0.08 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.11 per unit of risk. If you would invest 5,156 in CDSPI petite cap on October 29, 2024 and sell it today you would earn a total of 2,260 from holding CDSPI petite cap or generate 43.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
CDSPI petite cap vs. iShares Canadian HYBrid
Performance |
| Timeline |
| CDSPI petite cap |
| iShares Canadian HYBrid |
CDSPI Petite and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI Petite and IShares Canadian
The main advantage of trading using opposite CDSPI Petite and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI Petite position performs unexpectedly, IShares 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| CDSPI Petite vs. Fidelity Canadian Growth | CDSPI Petite vs. Tangerine Equity Growth | CDSPI Petite vs. Edgepoint Cdn Growth | CDSPI Petite vs. Mackenzie Canadian Growth |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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