Correlation Between CI Galaxy and CI Enhanced
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and CI Enhanced 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 Galaxy and CI Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Galaxy Blockchain and CI Enhanced Short, you can compare the effects of market volatilities on CI Galaxy and CI Enhanced 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 Galaxy with a short position of CI Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and CI Enhanced.
Diversification Opportunities for CI Galaxy and CI Enhanced
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBCX and FSB is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and CI Enhanced Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Enhanced Short and CI Galaxy 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 Galaxy Blockchain are associated (or correlated) with CI Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Enhanced Short has no effect on the direction of CI Galaxy i.e., CI Galaxy and CI Enhanced go up and down completely randomly.
Pair Corralation between CI Galaxy and CI Enhanced
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 32.65 times more return on investment than CI Enhanced. However, CI Galaxy is 32.65 times more volatile than CI Enhanced Short. It trades about 0.12 of its potential returns per unit of risk. CI Enhanced Short is currently generating about 0.16 per unit of risk. If you would invest 1,191 in CI Galaxy Blockchain on August 26, 2024 and sell it today you would earn a total of 2,756 from holding CI Galaxy Blockchain or generate 231.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.09% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. CI Enhanced Short
Performance |
| Timeline |
| CI Galaxy Blockchain |
| CI Enhanced Short |
CI Galaxy and CI Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and CI Enhanced
The main advantage of trading using opposite CI Galaxy and CI Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, CI Enhanced 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 Enhanced will offset losses from the drop in CI Enhanced's long position.| CI Galaxy vs. NBI High Yield | CI Galaxy vs. NBI Unconstrained Fixed | CI Galaxy vs. Mackenzie Developed ex North | CI Galaxy vs. BMO Short Term Bond |
| CI Enhanced vs. Franklin Global Aggregate | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. PIMCO Global Short | CI Enhanced vs. CIBC Core Plus |
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 CEOs Directory module to screen CEOs from public companies around the world.
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