Correlation Between CI Synergy and CI Signature
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By analyzing existing cross correlation between CI Synergy American and CI Signature Cat, you can compare the effects of market volatilities on CI Synergy and CI Signature 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 CI Synergy with a short position of CI Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Synergy and CI Signature.
Diversification Opportunities for CI Synergy and CI Signature
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 0P000075Q1 and 0P0001FKWD is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CI Synergy American and CI Signature Cat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Signature Cat and CI Synergy 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 CI Synergy American are associated (or correlated) with CI Signature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Signature Cat has no effect on the direction of CI Synergy i.e., CI Synergy and CI Signature go up and down completely randomly.
Pair Corralation between CI Synergy and CI Signature
Assuming the 90 days trading horizon CI Synergy is expected to generate 1.44 times less return on investment than CI Signature. But when comparing it to its historical volatility, CI Synergy American is 1.66 times less risky than CI Signature. It trades about 0.16 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,741 in CI Signature Cat on October 28, 2024 and sell it today you would earn a total of 2,337 from holding CI Signature Cat or generate 134.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 60.4% |
| Values | Daily Returns |
CI Synergy American vs. CI Signature Cat
Performance |
| Timeline |
| CI Synergy American |
| CI Signature Cat |
CI Synergy and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Synergy and CI Signature
The main advantage of trading using opposite CI Synergy and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Synergy position performs unexpectedly, CI Signature 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 Signature will offset losses from the drop in CI Signature's long position.| CI Synergy vs. Fidelity Tactical High | CI Synergy vs. Fidelity ClearPath 2045 | CI Synergy vs. Bloom Select Income | CI Synergy vs. Mackenzie Ivy European |
| CI Signature vs. Fidelity Tactical High | CI Signature vs. Bloom Select Income | CI Signature vs. Dynamic Alternative Yield | CI Signature vs. RBC Canadian Equity |
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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