Correlation Between Mawer Equity and CI Global
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By analyzing existing cross correlation between Mawer Equity A and CI Global Alpha, you can compare the effects of market volatilities on Mawer Equity 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 Mawer Equity with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Equity and CI Global.
Diversification Opportunities for Mawer Equity and CI Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mawer and 0P000070HA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Equity A 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 Mawer Equity 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 Mawer Equity A 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 Mawer Equity i.e., Mawer Equity and CI Global go up and down completely randomly.
Pair Corralation between Mawer Equity and CI Global
Assuming the 90 days trading horizon Mawer Equity is expected to generate 1.74 times less return on investment than CI Global. But when comparing it to its historical volatility, Mawer Equity A is 2.47 times less risky than CI Global. It trades about 0.17 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,405 in CI Global Alpha on September 1, 2024 and sell it today you would earn a total of 1,994 from holding CI Global Alpha or generate 23.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.15% |
| Values | Daily Returns |
Mawer Equity A vs. CI Global Alpha
Performance |
| Timeline |
| Mawer Equity A |
| CI Global Alpha |
Mawer Equity and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Equity and CI Global
The main advantage of trading using opposite Mawer Equity and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Equity 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.| Mawer Equity vs. BMO Aggregate Bond | Mawer Equity vs. iShares Canadian HYBrid | Mawer Equity vs. Brompton European Dividend | Mawer Equity vs. Solar Alliance Energy |
| CI Global vs. Fidelity Tactical High | CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. Mawer Canadien obligations |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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