Correlation Between CI Signature and Dow Jones
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By analyzing existing cross correlation between CI Signature Cat and Dow Jones Industrial, you can compare the effects of market volatilities on CI Signature and Dow Jones 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 CI Signature with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Signature and Dow Jones.
Diversification Opportunities for CI Signature and Dow Jones
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 0P0001FKWD and Dow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CI Signature Cat and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and CI Signature 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 CI Signature Cat are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of CI Signature i.e., CI Signature and Dow Jones go up and down completely randomly.
Pair Corralation between CI Signature and Dow Jones
Assuming the 90 days trading horizon CI Signature Cat is expected to generate 1.64 times more return on investment than Dow Jones. However, CI Signature is 1.64 times more volatile than Dow Jones Industrial. It trades about 0.28 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.25 per unit of risk. If you would invest 3,326 in CI Signature Cat on August 29, 2024 and sell it today you would earn a total of 327.00 from holding CI Signature Cat or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI Signature Cat vs. Dow Jones Industrial
Performance |
| Timeline |
CI Signature and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CI Signature Cat
Pair trading matchups for CI Signature
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CI Signature and Dow Jones
The main advantage of trading using opposite CI Signature and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Signature position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| CI Signature vs. Fidelity Tactical High | CI Signature vs. Fidelity ClearPath 2045 | CI Signature vs. Bloom Select Income | CI Signature vs. Global Healthcare Income |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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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