Correlation Between CIBC Core and Mackenzie Core
Can any of the company-specific risk be diversified away by investing in both CIBC Core and Mackenzie 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 CIBC Core and Mackenzie Core 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 Mackenzie Core Plus, you can compare the effects of market volatilities on CIBC Core and Mackenzie 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 CIBC Core with a short position of Mackenzie Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Core and Mackenzie Core.
Diversification Opportunities for CIBC Core and Mackenzie Core
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CIBC and Mackenzie is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Core Fixed and Mackenzie Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Core Plus 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 Mackenzie Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Core Plus has no effect on the direction of CIBC Core i.e., CIBC Core and Mackenzie Core go up and down completely randomly.
Pair Corralation between CIBC Core and Mackenzie Core
Assuming the 90 days trading horizon CIBC Core Fixed is expected to generate 0.81 times more return on investment than Mackenzie Core. However, CIBC Core Fixed is 1.24 times less risky than Mackenzie Core. It trades about 0.07 of its potential returns per unit of risk. Mackenzie Core Plus is currently generating about 0.04 per unit of risk. If you would invest 1,650 in CIBC Core Fixed on August 29, 2024 and sell it today you would earn a total of 151.00 from holding CIBC Core Fixed or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIBC Core Fixed vs. Mackenzie Core Plus
Performance |
| Timeline |
| CIBC Core Fixed |
| Mackenzie Core Plus |
CIBC Core and Mackenzie Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Core and Mackenzie Core
The main advantage of trading using opposite CIBC Core and Mackenzie Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Core position performs unexpectedly, Mackenzie 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 Mackenzie Core will offset losses from the drop in Mackenzie Core's long position.| CIBC Core vs. Mackenzie Core Plus | CIBC Core vs. Mackenzie Unconstrained Bond | CIBC Core vs. Mackenzie Floating Rate | CIBC Core vs. Mackenzie Canadian Short |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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