Correlation Between Bloom Select and CDSPI Petite
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By analyzing existing cross correlation between Bloom Select Income and CDSPI petite cap, you can compare the effects of market volatilities on Bloom Select and CDSPI Petite 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 Bloom Select with a short position of CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and CDSPI Petite.
Diversification Opportunities for Bloom Select and CDSPI Petite
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and CDSPI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and CDSPI petite cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI petite cap and Bloom Select 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 Bloom Select Income are associated (or correlated) with CDSPI Petite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI petite cap has no effect on the direction of Bloom Select i.e., Bloom Select and CDSPI Petite go up and down completely randomly.
Pair Corralation between Bloom Select and CDSPI Petite
Assuming the 90 days trading horizon Bloom Select is expected to generate 1.56 times less return on investment than CDSPI Petite. In addition to that, Bloom Select is 1.07 times more volatile than CDSPI petite cap. It trades about 0.16 of its total potential returns per unit of risk. CDSPI petite cap is currently generating about 0.27 per unit of volatility. If you would invest 7,112 in CDSPI petite cap on October 28, 2024 and sell it today you would earn a total of 304.00 from holding CDSPI petite cap or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bloom Select Income vs. CDSPI petite cap
Performance |
| Timeline |
| Bloom Select Income |
| CDSPI petite cap |
Bloom Select and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and CDSPI Petite
The main advantage of trading using opposite Bloom Select and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, CDSPI Petite 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 CDSPI Petite will offset losses from the drop in CDSPI Petite's long position.| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
| CDSPI Petite vs. iShares Canadian HYBrid | CDSPI Petite vs. Altagas Cum Red | CDSPI Petite vs. European Residential Real | CDSPI Petite vs. iShares Fundamental Hedged |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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