Correlation Between Bloom Select and CDSPI SP
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By analyzing existing cross correlation between Bloom Select Income and CDSPI SP 500, you can compare the effects of market volatilities on Bloom Select and CDSPI SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and CDSPI SP.
Diversification Opportunities for Bloom Select and CDSPI SP
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bloom and CDSPI is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and CDSPI SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI SP 500 has no effect on the direction of Bloom Select i.e., Bloom Select and CDSPI SP go up and down completely randomly.
Pair Corralation between Bloom Select and CDSPI SP
Assuming the 90 days trading horizon Bloom Select Income is expected to generate 1.06 times more return on investment than CDSPI SP. However, Bloom Select is 1.06 times more volatile than CDSPI SP 500. It trades about 0.16 of its potential returns per unit of risk. CDSPI SP 500 is currently generating about 0.14 per unit of risk. If you would invest 776.00 in Bloom Select Income on October 28, 2024 and sell it today you would earn a total of 22.00 from holding Bloom Select Income or generate 2.84% 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 SP 500
Performance |
| Timeline |
| Bloom Select Income |
| CDSPI SP 500 |
Bloom Select and CDSPI SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and CDSPI SP
The main advantage of trading using opposite Bloom Select and CDSPI SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, CDSPI SP 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 SP will offset losses from the drop in CDSPI SP'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 SP vs. PHN Multi Style All Cap | CDSPI SP vs. RBC Dividend | CDSPI SP vs. Mawer Equity A | CDSPI SP vs. TD Index Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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