Correlation Between TD Comfort and CI Signature
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By analyzing existing cross correlation between TD Comfort Balanced and CI Signature Cat, you can compare the effects of market volatilities on TD Comfort 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 TD Comfort with a short position of CI Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Comfort and CI Signature.
Diversification Opportunities for TD Comfort and CI Signature
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0001FAU8 and 0P0001FKWD is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding TD Comfort Balanced 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 TD Comfort 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 TD Comfort Balanced 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 TD Comfort i.e., TD Comfort and CI Signature go up and down completely randomly.
Pair Corralation between TD Comfort and CI Signature
Assuming the 90 days trading horizon TD Comfort is expected to generate 3.85 times less return on investment than CI Signature. But when comparing it to its historical volatility, TD Comfort Balanced is 3.82 times less risky than CI Signature. It trades about 0.36 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 3,279 in CI Signature Cat on September 2, 2024 and sell it today you would earn a total of 356.00 from holding CI Signature Cat or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
TD Comfort Balanced vs. CI Signature Cat
Performance |
| Timeline |
| TD Comfort Balanced |
| CI Signature Cat |
TD Comfort and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Comfort and CI Signature
The main advantage of trading using opposite TD Comfort and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Comfort 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.| TD Comfort vs. BMO Aggregate Bond | TD Comfort vs. iShares Canadian HYBrid | TD Comfort vs. Brompton European Dividend | TD Comfort vs. Solar Alliance Energy |
| CI Signature vs. Fidelity Tactical High | CI Signature vs. Global Healthcare Income | CI Signature vs. CI Global Alpha | CI Signature vs. CI Global Alpha |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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