Correlation Between Batero Gold and CI Financial
Can any of the company-specific risk be diversified away by investing in both Batero Gold 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 Batero Gold and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batero Gold Corp and CI Financial Corp, you can compare the effects of market volatilities on Batero Gold 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 Batero Gold with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batero Gold and CI Financial.
Diversification Opportunities for Batero Gold and CI Financial
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Batero and CIX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Batero Gold Corp 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 Batero Gold 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 Batero Gold Corp 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 Batero Gold i.e., Batero Gold and CI Financial go up and down completely randomly.
Pair Corralation between Batero Gold and CI Financial
Assuming the 90 days horizon Batero Gold Corp is expected to generate 1.73 times more return on investment than CI Financial. However, Batero Gold is 1.73 times more volatile than CI Financial Corp. It trades about 0.14 of its potential returns per unit of risk. CI Financial Corp is currently generating about 0.23 per unit of risk. If you would invest 4.00 in Batero Gold Corp on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Batero Gold Corp or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batero Gold Corp vs. CI Financial Corp
Performance |
| Timeline |
| Batero Gold Corp |
| CI Financial Corp |
Batero Gold and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batero Gold and CI Financial
The main advantage of trading using opposite Batero Gold and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batero Gold 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.| Batero Gold vs. Storage Vault Canada | Batero Gold vs. Costco Wholesale Corp | Batero Gold vs. NextSource Materials | Batero Gold vs. Gamehost |
| CI Financial vs. Berkshire Hathaway CDR | CI Financial vs. E L Financial Corp | CI Financial vs. E L Financial 3 | CI Financial vs. Molson Coors Canada |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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