Correlation Between Cibc Atlas and Siit High
Can any of the company-specific risk be diversified away by investing in both Cibc Atlas and Siit High 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 Cibc Atlas and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cibc Atlas All and Siit High Yield, you can compare the effects of market volatilities on Cibc Atlas and Siit High 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 Cibc Atlas with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibc Atlas and Siit High.
Diversification Opportunities for Cibc Atlas and Siit High
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cibc and Siit is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas All and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Cibc Atlas 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 Cibc Atlas All are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and Siit High go up and down completely randomly.
Pair Corralation between Cibc Atlas and Siit High
Assuming the 90 days horizon Cibc Atlas All is expected to generate 3.05 times more return on investment than Siit High. However, Cibc Atlas is 3.05 times more volatile than Siit High Yield. It trades about 0.09 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.09 per unit of risk. If you would invest 2,850 in Cibc Atlas All on August 30, 2024 and sell it today you would earn a total of 1,617 from holding Cibc Atlas All or generate 56.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cibc Atlas All vs. Siit High Yield
Performance |
| Timeline |
| Cibc Atlas All |
| Siit High Yield |
Cibc Atlas and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cibc Atlas and Siit High
The main advantage of trading using opposite Cibc Atlas and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibc Atlas position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Cibc Atlas vs. Franklin Real Estate | Cibc Atlas vs. Redwood Real Estate | Cibc Atlas vs. Morgan Stanley Institutional | Cibc Atlas vs. Pender Real Estate |
| Siit High vs. Prudential High Yield | Siit High vs. HUMANA INC | Siit High vs. Aquagold International | Siit High vs. Barloworld Ltd ADR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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