Correlation Between CI Galaxy and BMO Clean
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and BMO Clean 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 BMO Clean 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 BMO Clean Energy, you can compare the effects of market volatilities on CI Galaxy and BMO Clean 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 BMO Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and BMO Clean.
Diversification Opportunities for CI Galaxy and BMO Clean
Significant diversification
The 3 months correlation between CBCX and BMO is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and BMO Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Clean Energy 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 BMO Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Clean Energy has no effect on the direction of CI Galaxy i.e., CI Galaxy and BMO Clean go up and down completely randomly.
Pair Corralation between CI Galaxy and BMO Clean
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 4.61 times more return on investment than BMO Clean. However, CI Galaxy is 4.61 times more volatile than BMO Clean Energy. It trades about 0.05 of its potential returns per unit of risk. BMO Clean Energy is currently generating about -0.02 per unit of risk. If you would invest 3,393 in CI Galaxy Blockchain on November 3, 2024 and sell it today you would earn a total of 94.00 from holding CI Galaxy Blockchain or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Galaxy Blockchain vs. BMO Clean Energy
Performance |
| Timeline |
| CI Galaxy Blockchain |
| BMO Clean Energy |
CI Galaxy and BMO Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and BMO Clean
The main advantage of trading using opposite CI Galaxy and BMO Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, BMO Clean 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 BMO Clean will offset losses from the drop in BMO Clean'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 |
| BMO Clean vs. BMO Short Term Bond | BMO Clean vs. BMO Canadian Bank | BMO Clean vs. BMO Aggregate Bond | BMO Clean vs. BMO Balanced ETF |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |