Correlation Between CDSPI Balanced and Bloom Select
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By analyzing existing cross correlation between CDSPI Balanced Value and Bloom Select Income, you can compare the effects of market volatilities on CDSPI Balanced 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 Balanced with a short position of Bloom Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI Balanced and Bloom Select.
Diversification Opportunities for CDSPI Balanced and Bloom Select
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CDSPI and Bloom is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI Balanced Value 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 Balanced 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 Balanced Value 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 Balanced i.e., CDSPI Balanced and Bloom Select go up and down completely randomly.
Pair Corralation between CDSPI Balanced and Bloom Select
Assuming the 90 days trading horizon CDSPI Balanced is expected to generate 1.45 times less return on investment than Bloom Select. But when comparing it to its historical volatility, CDSPI Balanced Value is 2.08 times less risky than Bloom Select. It trades about 0.23 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 | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CDSPI Balanced Value vs. Bloom Select Income
Performance |
| Timeline |
| CDSPI Balanced Value |
| Bloom Select Income |
CDSPI Balanced and Bloom Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI Balanced and Bloom Select
The main advantage of trading using opposite CDSPI Balanced and Bloom Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI Balanced 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 Balanced vs. RBC Select Balanced | CDSPI Balanced vs. TD Comfort Balanced | CDSPI Balanced vs. Mawer Balanced | CDSPI Balanced vs. Desjardins Melodia Balanced |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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