Correlation Between Edgepoint Global and CDSPI Canadian
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By analyzing existing cross correlation between Edgepoint Global Portfolio and CDSPI Canadian Equity, you can compare the effects of market volatilities on Edgepoint Global and CDSPI Canadian 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 Edgepoint Global with a short position of CDSPI Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgepoint Global and CDSPI Canadian.
Diversification Opportunities for Edgepoint Global and CDSPI Canadian
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Edgepoint and CDSPI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Edgepoint Global Portfolio and CDSPI Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI Canadian Equity and Edgepoint 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 Edgepoint Global Portfolio are associated (or correlated) with CDSPI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI Canadian Equity has no effect on the direction of Edgepoint Global i.e., Edgepoint Global and CDSPI Canadian go up and down completely randomly.
Pair Corralation between Edgepoint Global and CDSPI Canadian
Assuming the 90 days trading horizon Edgepoint Global Portfolio is expected to generate 1.0 times more return on investment than CDSPI Canadian. However, Edgepoint Global Portfolio is 1.0 times less risky than CDSPI Canadian. It trades about 0.25 of its potential returns per unit of risk. CDSPI Canadian Equity is currently generating about 0.15 per unit of risk. If you would invest 3,700 in Edgepoint Global Portfolio on October 25, 2024 and sell it today you would earn a total of 104.00 from holding Edgepoint Global Portfolio or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgepoint Global Portfolio vs. CDSPI Canadian Equity
Performance |
| Timeline |
| Edgepoint Global Por |
| CDSPI Canadian Equity |
Edgepoint Global and CDSPI Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgepoint Global and CDSPI Canadian
The main advantage of trading using opposite Edgepoint Global and CDSPI Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgepoint Global position performs unexpectedly, CDSPI Canadian 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 CDSPI Canadian will offset losses from the drop in CDSPI Canadian's long position.| Edgepoint Global vs. Capital Group Global | Edgepoint Global vs. CI Global Resource | Edgepoint Global vs. CI Global Alpha | Edgepoint Global vs. Manulife Global Equity |
| CDSPI Canadian vs. CDSPI Common Stock | CDSPI Canadian vs. CDSPI Dividend | CDSPI Canadian vs. CDSPI Balanced Value | CDSPI Canadian vs. CDSPI SP 500 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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