Correlation Between CI Yield and CI MidCap
Can any of the company-specific risk be diversified away by investing in both CI Yield and CI MidCap 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 CI MidCap 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 CI MidCap Dividend, you can compare the effects of market volatilities on CI Yield and CI MidCap 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 CI MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Yield and CI MidCap.
Diversification Opportunities for CI Yield and CI MidCap
Pay attention - limited upside
The 3 months correlation between CAGG and UMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Yield Enhanced and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 CI MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of CI Yield i.e., CI Yield and CI MidCap go up and down completely randomly.
Pair Corralation between CI Yield and CI MidCap
If you would invest (100.00) in CI MidCap Dividend on September 2, 2024 and sell it today you would earn a total of 100.00 from holding CI MidCap Dividend or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CI Yield Enhanced vs. CI MidCap Dividend
Performance |
| Timeline |
| CI Yield Enhanced |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| CI MidCap Dividend |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
CI Yield and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Yield and CI MidCap
The main advantage of trading using opposite CI Yield and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Yield position performs unexpectedly, CI MidCap 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 MidCap will offset losses from the drop in CI MidCap'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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