Correlation Between CI Galaxy and Scotia International
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and Scotia International 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 Scotia International 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 Scotia International Equity, you can compare the effects of market volatilities on CI Galaxy and Scotia International 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 Scotia International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Scotia International.
Diversification Opportunities for CI Galaxy and Scotia International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBCX and Scotia is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Scotia International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotia International 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 Scotia International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotia International has no effect on the direction of CI Galaxy i.e., CI Galaxy and Scotia International go up and down completely randomly.
Pair Corralation between CI Galaxy and Scotia International
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 8.56 times more return on investment than Scotia International. However, CI Galaxy is 8.56 times more volatile than Scotia International Equity. It trades about 0.11 of its potential returns per unit of risk. Scotia International Equity is currently generating about 0.09 per unit of risk. If you would invest 885.00 in CI Galaxy Blockchain on September 5, 2024 and sell it today you would earn a total of 3,000 from holding CI Galaxy Blockchain or generate 338.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 64.04% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. Scotia International Equity
Performance |
| Timeline |
| CI Galaxy Blockchain |
| Scotia International |
CI Galaxy and Scotia International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and Scotia International
The main advantage of trading using opposite CI Galaxy and Scotia International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, Scotia International 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 Scotia International will offset losses from the drop in Scotia International's long position.| CI Galaxy vs. Harvest Clean Energy | CI Galaxy vs. First Trust Nasdaq | CI Galaxy vs. BMO Aggregate Bond | CI Galaxy vs. iShares Canadian HYBrid |
| Scotia International vs. First Asset Energy | Scotia International vs. First Asset Tech | Scotia International vs. Harvest Equal Weight | Scotia International vs. CI Canada Lifeco |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |