Correlation Between CIBC Core and CIBC Multifactor
Can any of the company-specific risk be diversified away by investing in both CIBC Core and CIBC Multifactor 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 CIBC Core and CIBC Multifactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Core Fixed and CIBC Multifactor Equity, you can compare the effects of market volatilities on CIBC Core and CIBC Multifactor 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 CIBC Core with a short position of CIBC Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Core and CIBC Multifactor.
Diversification Opportunities for CIBC Core and CIBC Multifactor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIBC and CIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Core Fixed and CIBC Multifactor Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Multifactor Equity and CIBC Core 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 CIBC Core Fixed are associated (or correlated) with CIBC Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Multifactor Equity has no effect on the direction of CIBC Core i.e., CIBC Core and CIBC Multifactor go up and down completely randomly.
Pair Corralation between CIBC Core and CIBC Multifactor
If you would invest 1,783 in CIBC Core Fixed on September 1, 2024 and sell it today you would earn a total of 19.00 from holding CIBC Core Fixed or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CIBC Core Fixed vs. CIBC Multifactor Equity
Performance |
| Timeline |
| CIBC Core Fixed |
| CIBC Multifactor Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CIBC Core and CIBC Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Core and CIBC Multifactor
The main advantage of trading using opposite CIBC Core and CIBC Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Core position performs unexpectedly, CIBC Multifactor 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 CIBC Multifactor will offset losses from the drop in CIBC Multifactor's long position.| CIBC Core vs. BetaPro Gold Bullion | CIBC Core vs. BetaPro SP TSX | CIBC Core vs. BetaPro SPTSX Capped | CIBC Core vs. Global X Active |
| CIBC Multifactor vs. CIBC Core Fixed | CIBC Multifactor vs. CIBC Canadian Equity | CIBC Multifactor vs. CIBC Clean Energy | CIBC Multifactor vs. CIBC Conservative Fixed |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |