Correlation Between CI Galaxy and BMO Global
Can any of the company-specific risk be diversified away by investing in both CI Galaxy and BMO Global 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 Global 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 Global Strategic, you can compare the effects of market volatilities on CI Galaxy and BMO Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and BMO Global.
Diversification Opportunities for CI Galaxy and BMO Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBCX and BMO is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and BMO Global Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Global Strategic 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Global Strategic has no effect on the direction of CI Galaxy i.e., CI Galaxy and BMO Global go up and down completely randomly.
Pair Corralation between CI Galaxy and BMO Global
Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 22.16 times more return on investment than BMO Global. However, CI Galaxy is 22.16 times more volatile than BMO Global Strategic. It trades about 0.13 of its potential returns per unit of risk. BMO Global Strategic is currently generating about 0.11 per unit of risk. If you would invest 3,125 in CI Galaxy Blockchain on August 29, 2024 and sell it today you would earn a total of 475.00 from holding CI Galaxy Blockchain or generate 15.2% 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. BMO Global Strategic
Performance |
| Timeline |
| CI Galaxy Blockchain |
| BMO Global Strategic |
CI Galaxy and BMO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Galaxy and BMO Global
The main advantage of trading using opposite CI Galaxy and BMO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy position performs unexpectedly, BMO Global 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 Global will offset losses from the drop in BMO Global'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 Global vs. Purpose Total Return | BMO Global vs. Purpose Multi Asset Income | BMO Global vs. Purpose Strategic Yield | BMO Global vs. BMO Aggregate 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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