Correlation Between CI Galaxy and Hamilton REITs
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and Hamilton REITs 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 Hamilton REITs 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 Hamilton REITs YIELD, you can compare the effects of market volatilities on CI Galaxy and Hamilton REITs 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 Hamilton REITs. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Hamilton REITs.
Diversification Opportunities for CI Galaxy and Hamilton REITs
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBCX and Hamilton is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Hamilton REITs YIELD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton REITs YIELD 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 Hamilton REITs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton REITs YIELD has no effect on the direction of CI Galaxy i.e., CI Galaxy and Hamilton REITs go up and down completely randomly.
Pair Corralation between CI Galaxy and Hamilton REITs
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 8.79 times more return on investment than Hamilton REITs. However, CI Galaxy is 8.79 times more volatile than Hamilton REITs YIELD. It trades about 0.19 of its potential returns per unit of risk. Hamilton REITs YIELD is currently generating about -0.03 per unit of risk. If you would invest 3,125 in CI Galaxy Blockchain on August 28, 2024 and sell it today you would earn a total of 765.00 from holding CI Galaxy Blockchain or generate 24.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. Hamilton REITs YIELD
Performance |
| Timeline |
| CI Galaxy Blockchain |
| Hamilton REITs YIELD |
CI Galaxy and Hamilton REITs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and Hamilton REITs
The main advantage of trading using opposite CI Galaxy and Hamilton REITs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, Hamilton REITs 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 Hamilton REITs will offset losses from the drop in Hamilton REITs' 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 |
| Hamilton REITs vs. Hamilton Equity Yield | Hamilton REITs vs. Hamilton Enhanced Canadian | Hamilton REITs vs. Hamilton Australian Bank | Hamilton REITs vs. Hamilton MidSmall Cap Financials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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