Correlation Between CI Yield and Mackenzie Developed
Can any of the company-specific risk be diversified away by investing in both CI Yield and Mackenzie Developed 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 CI Yield and Mackenzie Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Yield Enhanced and Mackenzie Developed ex North, you can compare the effects of market volatilities on CI Yield and Mackenzie Developed 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 CI Yield with a short position of Mackenzie Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Yield and Mackenzie Developed.
Diversification Opportunities for CI Yield and Mackenzie Developed
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CAGG and Mackenzie is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI Yield Enhanced and Mackenzie Developed ex North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Developed and CI Yield 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 CI Yield Enhanced are associated (or correlated) with Mackenzie Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Developed has no effect on the direction of CI Yield i.e., CI Yield and Mackenzie Developed go up and down completely randomly.
Pair Corralation between CI Yield and Mackenzie Developed
Assuming the 90 days trading horizon CI Yield Enhanced is expected to generate 1.08 times more return on investment than Mackenzie Developed. However, CI Yield is 1.08 times more volatile than Mackenzie Developed ex North. It trades about 0.1 of its potential returns per unit of risk. Mackenzie Developed ex North is currently generating about 0.09 per unit of risk. If you would invest 4,048 in CI Yield Enhanced on September 1, 2024 and sell it today you would earn a total of 419.00 from holding CI Yield Enhanced or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
CI Yield Enhanced vs. Mackenzie Developed ex North
Performance |
| Timeline |
| CI Yield Enhanced |
| Mackenzie Developed |
CI Yield and Mackenzie Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Yield and Mackenzie Developed
The main advantage of trading using opposite CI Yield and Mackenzie Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Yield position performs unexpectedly, Mackenzie Developed 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 Mackenzie Developed will offset losses from the drop in Mackenzie Developed's long position.| CI Yield vs. NBI High Yield | CI Yield vs. NBI Unconstrained Fixed | CI Yield vs. Mackenzie Developed ex North | CI Yield vs. BMO Short Term Bond |
| Mackenzie Developed vs. Mackenzie Global Sustainable | Mackenzie Developed vs. Mackenzie Aggregate Bond | Mackenzie Developed vs. Mackenzie Canadian Ultra | Mackenzie Developed vs. Mackenzie TIPS Index |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |