Correlation Between PHN Canadian and CI Global
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By analyzing existing cross correlation between PHN Canadian Equity and CI Global Alpha, you can compare the effects of market volatilities on PHN Canadian and CI 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 PHN Canadian with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and CI Global.
Diversification Opportunities for PHN Canadian and CI Global
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PHN and 0P000070HA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity and CI Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Alpha and PHN Canadian 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 PHN Canadian Equity are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Alpha has no effect on the direction of PHN Canadian i.e., PHN Canadian and CI Global go up and down completely randomly.
Pair Corralation between PHN Canadian and CI Global
Assuming the 90 days trading horizon PHN Canadian Equity is expected to generate 0.4 times more return on investment than CI Global. However, PHN Canadian Equity is 2.52 times less risky than CI Global. It trades about 0.17 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.05 per unit of risk. If you would invest 2,148 in PHN Canadian Equity on October 20, 2024 and sell it today you would earn a total of 39.00 from holding PHN Canadian Equity or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
PHN Canadian Equity vs. CI Global Alpha
Performance |
| Timeline |
| PHN Canadian Equity |
| CI Global Alpha |
PHN Canadian and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and CI Global
The main advantage of trading using opposite PHN Canadian and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian position performs unexpectedly, CI 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 CI Global will offset losses from the drop in CI Global's long position.| PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. Tangerine Equity Growth | PHN Canadian vs. CDSPI Canadian Equity | PHN Canadian vs. Fidelity Tactical High |
| CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. CDSPI Global Growth | CI Global vs. Invesco Global Companies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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