Correlation Between Bloom Select and CI Global
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By analyzing existing cross correlation between Bloom Select Income and CI Global Alpha, you can compare the effects of market volatilities on Bloom Select and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and CI Global.
Diversification Opportunities for Bloom Select and CI Global
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloom and CIG18006 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and CI Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Alpha 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Alpha has no effect on the direction of Bloom Select i.e., Bloom Select and CI Global go up and down completely randomly.
Pair Corralation between Bloom Select and CI Global
Assuming the 90 days trading horizon Bloom Select is expected to generate 1.93 times less return on investment than CI Global. But when comparing it to its historical volatility, Bloom Select Income is 1.33 times less risky than CI Global. It trades about 0.08 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,405 in CI Global Alpha on September 1, 2024 and sell it today you would earn a total of 1,975 from holding CI Global Alpha or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Bloom Select Income vs. CI Global Alpha
Performance |
| Timeline |
| Bloom Select Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| CI Global Alpha |
Bloom Select and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and CI Global
The main advantage of trading using opposite Bloom Select and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, CI Global 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 Global will offset losses from the drop in CI Global'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 |
| CI Global vs. RBC Select Balanced | CI Global vs. RBC Portefeuille de | CI Global vs. Edgepoint Global Portfolio | CI Global vs. TD Comfort 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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