Correlation Between BMO Concentrated and CI Global
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By analyzing existing cross correlation between BMO Concentrated Global and CI Global Alpha, you can compare the effects of market volatilities on BMO Concentrated 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 BMO Concentrated with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Concentrated and CI Global.
Diversification Opportunities for BMO Concentrated and CI Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BMO and 0P000070HA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BMO Concentrated Global 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 BMO Concentrated 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 BMO Concentrated Global 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 BMO Concentrated i.e., BMO Concentrated and CI Global go up and down completely randomly.
Pair Corralation between BMO Concentrated and CI Global
Assuming the 90 days trading horizon BMO Concentrated is expected to generate 3.37 times less return on investment than CI Global. But when comparing it to its historical volatility, BMO Concentrated Global is 2.16 times less risky than CI Global. It trades about 0.08 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,696 in CI Global Alpha on August 26, 2024 and sell it today you would earn a total of 5,680 from holding CI Global Alpha or generate 120.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
BMO Concentrated Global vs. CI Global Alpha
Performance |
| Timeline |
| BMO Concentrated Global |
| CI Global Alpha |
BMO Concentrated and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Concentrated and CI Global
The main advantage of trading using opposite BMO Concentrated and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Concentrated 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.| BMO Concentrated vs. RBC Global Equity | BMO Concentrated vs. CI Black Creek | BMO Concentrated vs. TD Comfort Aggressive |
| CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. Manulife Global Equity | CI Global vs. Fidelity Global 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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