Correlation Between Abcellera Biologics and CI Financial

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Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and CI Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Abcellera Biologics and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and CI Financial Corp, you can compare the effects of market volatilities on Abcellera Biologics and CI Financial 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 Abcellera Biologics with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and CI Financial.

Diversification Opportunities for Abcellera Biologics and CI Financial

AbcelleraCIXXFDiversified AwayAbcelleraCIXXFDiversified Away100%
-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Abcellera and CIXXF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and Abcellera Biologics 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 Abcellera Biologics are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and CI Financial go up and down completely randomly.

Pair Corralation between Abcellera Biologics and CI Financial

If you would invest  306.00  in Abcellera Biologics on September 14, 2024 and sell it today you would lose (25.00) from holding Abcellera Biologics or give up 8.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.79%
ValuesDaily Returns

Abcellera Biologics  vs.  CI Financial Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -20-10010
JavaScript chart by amCharts 3.21.15ABCL CIXXF
       Timeline  
Abcellera Biologics 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Abcellera Biologics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Abcellera Biologics may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec2.42.52.62.72.82.933.1
CI Financial Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CI Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CI Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Abcellera Biologics and CI Financial Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-12.19-9.13-6.07-3.010.0513.016.139.2412.3615.48 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15ABCL CIXXF
       Returns  

Pair Trading with Abcellera Biologics and CI Financial

The main advantage of trading using opposite Abcellera Biologics and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, CI Financial 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 Financial will offset losses from the drop in CI Financial's long position.
The idea behind Abcellera Biologics and CI Financial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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