Correlation Between CIBC Core and CIBC Qx
Can any of the company-specific risk be diversified away by investing in both CIBC Core and CIBC Qx 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 Qx 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 Qx International, you can compare the effects of market volatilities on CIBC Core and CIBC Qx 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 Qx. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Core and CIBC Qx.
Diversification Opportunities for CIBC Core and CIBC Qx
Average diversification
The 3 months correlation between CIBC and CIBC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Core Fixed and CIBC Qx International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Qx International 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 Qx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Qx International has no effect on the direction of CIBC Core i.e., CIBC Core and CIBC Qx go up and down completely randomly.
Pair Corralation between CIBC Core and CIBC Qx
Assuming the 90 days trading horizon CIBC Core is expected to generate 1.64 times less return on investment than CIBC Qx. But when comparing it to its historical volatility, CIBC Core Fixed is 1.68 times less risky than CIBC Qx. It trades about 0.1 of its potential returns per unit of risk. CIBC Qx International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,831 in CIBC Qx International on September 1, 2024 and sell it today you would earn a total of 294.00 from holding CIBC Qx International or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
CIBC Core Fixed vs. CIBC Qx International
Performance |
| Timeline |
| CIBC Core Fixed |
| CIBC Qx International |
CIBC Core and CIBC Qx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Core and CIBC Qx
The main advantage of trading using opposite CIBC Core and CIBC Qx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Core position performs unexpectedly, CIBC Qx 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 Qx will offset losses from the drop in CIBC Qx'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 Qx vs. Brompton Global Dividend | CIBC Qx vs. Global Healthcare Income | CIBC Qx vs. Tech Leaders Income | CIBC Qx vs. Brompton North American |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |