Correlation Between CI Galaxy and Manulife Multifactor
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and Manulife Multifactor 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 Manulife Multifactor 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 Manulife Multifactor Canadian, you can compare the effects of market volatilities on CI Galaxy and Manulife Multifactor 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 Manulife Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Manulife Multifactor.
Diversification Opportunities for CI Galaxy and Manulife Multifactor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBCX and Manulife is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Manulife Multifactor Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Multifactor 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 Manulife Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Multifactor has no effect on the direction of CI Galaxy i.e., CI Galaxy and Manulife Multifactor go up and down completely randomly.
Pair Corralation between CI Galaxy and Manulife Multifactor
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 5.94 times more return on investment than Manulife Multifactor. However, CI Galaxy is 5.94 times more volatile than Manulife Multifactor Canadian. It trades about 0.1 of its potential returns per unit of risk. Manulife Multifactor Canadian is currently generating about 0.06 per unit of risk. If you would invest 1,513 in CI Galaxy Blockchain on September 12, 2024 and sell it today you would earn a total of 2,318 from holding CI Galaxy Blockchain or generate 153.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.66% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. Manulife Multifactor Canadian
Performance |
| Timeline |
| CI Galaxy Blockchain |
| Manulife Multifactor |
CI Galaxy and Manulife Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and Manulife Multifactor
The main advantage of trading using opposite CI Galaxy and Manulife Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, Manulife Multifactor 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 Manulife Multifactor will offset losses from the drop in Manulife Multifactor'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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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