Correlation Between CI Galaxy and Evolve Global
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and Evolve Global 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 Evolve Global 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 Evolve Global Healthcare, you can compare the effects of market volatilities on CI Galaxy and Evolve 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 CI Galaxy with a short position of Evolve Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Evolve Global.
Diversification Opportunities for CI Galaxy and Evolve Global
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBCX and Evolve is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Evolve Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Healthcare 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 Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Healthcare has no effect on the direction of CI Galaxy i.e., CI Galaxy and Evolve Global go up and down completely randomly.
Pair Corralation between CI Galaxy and Evolve Global
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 8.86 times more return on investment than Evolve Global. However, CI Galaxy is 8.86 times more volatile than Evolve Global Healthcare. It trades about 0.13 of its potential returns per unit of risk. Evolve Global Healthcare is currently generating about -0.16 per unit of risk. If you would invest 3,113 in CI Galaxy Blockchain on August 31, 2024 and sell it today you would earn a total of 502.00 from holding CI Galaxy Blockchain or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. Evolve Global Healthcare
Performance |
| Timeline |
| CI Galaxy Blockchain |
| Evolve Global Healthcare |
CI Galaxy and Evolve Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and Evolve Global
The main advantage of trading using opposite CI Galaxy and Evolve Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, Evolve 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 Evolve Global will offset losses from the drop in Evolve Global's long position.| CI Galaxy vs. Forstrong Global Income | CI Galaxy vs. BMO Aggregate Bond | CI Galaxy vs. iShares Canadian HYBrid | CI Galaxy vs. Brompton European Dividend |
| Evolve Global vs. Evolve Innovation Index | Evolve Global vs. Evolve Banks Enhanced | Evolve Global vs. Evolve Global Materials | Evolve Global vs. Evolve Cyber Security |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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