Correlation Between Allient and CI Financial
Can any of the company-specific risk be diversified away by investing in both Allient 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 Allient and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allient and CI Financial Corp, you can compare the effects of market volatilities on Allient 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 Allient with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and CI Financial.
Diversification Opportunities for Allient and CI Financial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allient and CIXXF is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Allient 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 Allient 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 Allient 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 Allient i.e., Allient and CI Financial go up and down completely randomly.
Pair Corralation between Allient and CI Financial
If you would invest 1,699 in Allient on August 24, 2024 and sell it today you would earn a total of 763.00 from holding Allient or generate 44.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Allient vs. CI Financial Corp
Performance |
| Timeline |
| Allient |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allient and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and CI Financial
The main advantage of trading using opposite Allient and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient 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.| Allient vs. Analog Devices | Allient vs. Boyd Gaming | Allient vs. Doubledown Interactive Co | Allient vs. Electronic Arts |
| CI Financial vs. Parker Hannifin | CI Financial vs. Taiwan Semiconductor Manufacturing | CI Financial vs. Everspin Technologies | CI Financial vs. Nordic Semiconductor ASA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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