Correlation Between CI Galaxy and IShares Core
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and IShares Core 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 IShares Core 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 iShares Core SP, you can compare the effects of market volatilities on CI Galaxy and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and IShares Core.
Diversification Opportunities for CI Galaxy and IShares Core
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBCX and IShares is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of CI Galaxy i.e., CI Galaxy and IShares Core go up and down completely randomly.
Pair Corralation between CI Galaxy and IShares Core
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 6.19 times more return on investment than IShares Core. However, CI Galaxy is 6.19 times more volatile than iShares Core SP. It trades about 0.11 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.12 per unit of risk. If you would invest 2,269 in CI Galaxy Blockchain on November 2, 2024 and sell it today you would earn a total of 1,195 from holding CI Galaxy Blockchain or generate 52.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. iShares Core SP
Performance |
| Timeline |
| CI Galaxy Blockchain |
| iShares Core SP |
CI Galaxy and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and IShares Core
The main advantage of trading using opposite CI Galaxy and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. iShares SPTSX 60 | IShares Core vs. iShares MSCI EAFE | IShares Core vs. iShares Core SPTSX | IShares Core vs. iShares SPTSX Capped |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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