Correlation Between Bloom Select and CDSPI Income
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By analyzing existing cross correlation between Bloom Select Income and CDSPI Income Growth, you can compare the effects of market volatilities on Bloom Select and CDSPI Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and CDSPI Income.
Diversification Opportunities for Bloom Select and CDSPI Income
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and CDSPI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and CDSPI Income Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI Income Growth 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 Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI Income Growth has no effect on the direction of Bloom Select i.e., Bloom Select and CDSPI Income go up and down completely randomly.
Pair Corralation between Bloom Select and CDSPI Income
Assuming the 90 days trading horizon Bloom Select Income is expected to generate 2.23 times more return on investment than CDSPI Income. However, Bloom Select is 2.23 times more volatile than CDSPI Income Growth. It trades about 0.16 of its potential returns per unit of risk. CDSPI Income Growth is currently generating about 0.22 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 Income Growth
Performance |
| Timeline |
| Bloom Select Income |
| CDSPI Income Growth |
Bloom Select and CDSPI Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and CDSPI Income
The main advantage of trading using opposite Bloom Select and CDSPI Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, CDSPI Income 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 Income will offset losses from the drop in CDSPI Income'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 Income vs. RBC Select Balanced | CDSPI Income vs. TD Comfort Balanced | CDSPI Income vs. Mawer Balanced | CDSPI Income vs. Desjardins Melodia Balanced |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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