Correlation Between CDSPI SP and Bloom Select
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By analyzing existing cross correlation between CDSPI SP 500 and Bloom Select Income, you can compare the effects of market volatilities on CDSPI SP 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 SP with a short position of Bloom Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI SP and Bloom Select.
Diversification Opportunities for CDSPI SP and Bloom Select
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CDSPI and Bloom is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI SP 500 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 SP 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 SP 500 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 SP i.e., CDSPI SP and Bloom Select go up and down completely randomly.
Pair Corralation between CDSPI SP and Bloom Select
Assuming the 90 days trading horizon CDSPI SP is expected to generate 1.19 times less return on investment than Bloom Select. But when comparing it to its historical volatility, CDSPI SP 500 is 1.06 times less risky than Bloom Select. It trades about 0.14 of its potential returns per unit of risk. Bloom Select Income is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Bloom Select Income on October 28, 2024 and sell it today you would earn a total of 22.00 from holding Bloom Select Income or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CDSPI SP 500 vs. Bloom Select Income
Performance |
| Timeline |
| CDSPI SP 500 |
| Bloom Select Income |
CDSPI SP and Bloom Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI SP and Bloom Select
The main advantage of trading using opposite CDSPI SP and Bloom Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI SP 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 SP vs. PHN Multi Style All Cap | CDSPI SP vs. RBC Dividend | CDSPI SP vs. Mawer Equity A | CDSPI SP vs. TD Index Fund |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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