Correlation Between Dynamic Alternative and CI Signature
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By analyzing existing cross correlation between Dynamic Alternative Yield and CI Signature Cat, you can compare the effects of market volatilities on Dynamic Alternative 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 Dynamic Alternative with a short position of CI Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Alternative and CI Signature.
Diversification Opportunities for Dynamic Alternative and CI Signature
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dynamic and 0P0001FKWD is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Alternative Yield 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 Dynamic Alternative 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 Dynamic Alternative Yield 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 Dynamic Alternative i.e., Dynamic Alternative and CI Signature go up and down completely randomly.
Pair Corralation between Dynamic Alternative and CI Signature
Assuming the 90 days trading horizon Dynamic Alternative is expected to generate 5.11 times less return on investment than CI Signature. But when comparing it to its historical volatility, Dynamic Alternative Yield is 3.88 times less risky than CI Signature. It trades about 0.1 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,754 in CI Signature Cat on November 6, 2024 and sell it today you would earn a total of 2,196 from holding CI Signature Cat or generate 125.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.54% |
| Values | Daily Returns |
Dynamic Alternative Yield vs. CI Signature Cat
Performance |
| Timeline |
| Dynamic Alternative Yield |
| CI Signature Cat |
Dynamic Alternative and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynamic Alternative and CI Signature
The main advantage of trading using opposite Dynamic Alternative and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Alternative 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.| Dynamic Alternative vs. TD Canadian Bond | Dynamic Alternative vs. CDSPI Corporate Bond | Dynamic Alternative vs. Fidelity Tactical High | Dynamic Alternative vs. Fidelity ClearPath 2045 |
| CI Signature vs. CI Signature Cat | CI Signature vs. CI Global Alpha | CI Signature vs. RBC Global Technology | CI Signature vs. Fidelity Technology Innovators |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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