Correlation Between CDSPI Global and Mawer Global
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By analyzing existing cross correlation between CDSPI Global Growth and Mawer Global Small, you can compare the effects of market volatilities on CDSPI Global and Mawer 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 CDSPI Global with a short position of Mawer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI Global and Mawer Global.
Diversification Opportunities for CDSPI Global and Mawer Global
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDSPI and Mawer is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI Global Growth and Mawer Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Global Small and CDSPI Global 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 Global Growth are associated (or correlated) with Mawer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Global Small has no effect on the direction of CDSPI Global i.e., CDSPI Global and Mawer Global go up and down completely randomly.
Pair Corralation between CDSPI Global and Mawer Global
Assuming the 90 days trading horizon CDSPI Global Growth is expected to generate 1.14 times more return on investment than Mawer Global. However, CDSPI Global is 1.14 times more volatile than Mawer Global Small. It trades about -0.04 of its potential returns per unit of risk. Mawer Global Small is currently generating about -0.2 per unit of risk. If you would invest 6,108 in CDSPI Global Growth on October 12, 2024 and sell it today you would lose (44.00) from holding CDSPI Global Growth or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDSPI Global Growth vs. Mawer Global Small
Performance |
| Timeline |
| CDSPI Global Growth |
| Mawer Global Small |
CDSPI Global and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI Global and Mawer Global
The main advantage of trading using opposite CDSPI Global and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI Global position performs unexpectedly, Mawer 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 Mawer Global will offset losses from the drop in Mawer Global's long position.| CDSPI Global vs. Global Healthcare Income | CDSPI Global vs. CI Global Alpha | CDSPI Global vs. CI Global Alpha | CDSPI Global vs. Invesco Global Companies |
| Mawer Global vs. Global Healthcare Income | Mawer Global vs. CI Global Alpha | Mawer Global vs. CI Global Alpha | Mawer Global vs. CDSPI Global Growth |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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