Correlation Between At Mid and Cibc Atlas
Can any of the company-specific risk be diversified away by investing in both At Mid and Cibc Atlas 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 At Mid and Cibc Atlas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between At Mid Cap and Cibc Atlas All, you can compare the effects of market volatilities on At Mid and Cibc Atlas 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 At Mid with a short position of Cibc Atlas. Check out your portfolio center. Please also check ongoing floating volatility patterns of At Mid and Cibc Atlas.
Diversification Opportunities for At Mid and Cibc Atlas
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AWMIX and Cibc is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding At Mid Cap and Cibc Atlas All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas All and At Mid 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 At Mid Cap are associated (or correlated) with Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas All has no effect on the direction of At Mid i.e., At Mid and Cibc Atlas go up and down completely randomly.
Pair Corralation between At Mid and Cibc Atlas
Assuming the 90 days horizon At Mid Cap is expected to generate 0.8 times more return on investment than Cibc Atlas. However, At Mid Cap is 1.26 times less risky than Cibc Atlas. It trades about 0.32 of its potential returns per unit of risk. Cibc Atlas All is currently generating about 0.1 per unit of risk. If you would invest 1,955 in At Mid Cap on November 3, 2024 and sell it today you would earn a total of 123.00 from holding At Mid Cap or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
At Mid Cap vs. Cibc Atlas All
Performance |
| Timeline |
| At Mid Cap |
| Cibc Atlas All |
At Mid and Cibc Atlas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with At Mid and Cibc Atlas
The main advantage of trading using opposite At Mid and Cibc Atlas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if At Mid position performs unexpectedly, Cibc Atlas 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 Cibc Atlas will offset losses from the drop in Cibc Atlas' long position.| At Mid vs. Lord Abbett Diversified | At Mid vs. Delaware Limited Term Diversified | At Mid vs. Federated Hermes Conservative | At Mid vs. Stone Ridge Diversified |
| Cibc Atlas vs. Pace High Yield | Cibc Atlas vs. Rbc Bluebay Global | Cibc Atlas vs. One Choice Portfolio | Cibc Atlas vs. Transamerica High Yield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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