Correlation Between CIBC Global and CIBC Canadian
Can any of the company-specific risk be diversified away by investing in both CIBC Global and CIBC Canadian 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 Global and CIBC Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Global Growth and CIBC Canadian Equity, you can compare the effects of market volatilities on CIBC Global and CIBC Canadian 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 Global with a short position of CIBC Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Global and CIBC Canadian.
Diversification Opportunities for CIBC Global and CIBC Canadian
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIBC and CIBC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Global Growth and CIBC Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Canadian Equity and CIBC Global 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 Global Growth are associated (or correlated) with CIBC Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Canadian Equity has no effect on the direction of CIBC Global i.e., CIBC Global and CIBC Canadian go up and down completely randomly.
Pair Corralation between CIBC Global and CIBC Canadian
Assuming the 90 days trading horizon CIBC Global Growth is expected to under-perform the CIBC Canadian. But the etf apears to be less risky and, when comparing its historical volatility, CIBC Global Growth is 1.21 times less risky than CIBC Canadian. The etf trades about -0.11 of its potential returns per unit of risk. The CIBC Canadian Equity is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,744 in CIBC Canadian Equity on November 27, 2024 and sell it today you would lose (2.00) from holding CIBC Canadian Equity or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIBC Global Growth vs. CIBC Canadian Equity
Performance |
| Timeline |
| CIBC Global Growth |
| CIBC Canadian Equity |
CIBC Global and CIBC Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Global and CIBC Canadian
The main advantage of trading using opposite CIBC Global and CIBC Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Global position performs unexpectedly, CIBC Canadian 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 Canadian will offset losses from the drop in CIBC Canadian's long position.| CIBC Global vs. CIBC International Equity | CIBC Global vs. CIBC Flexible Yield | CIBC Global vs. Evolve Global Materials | CIBC Global vs. CIBC Equity Index |
| CIBC Canadian vs. CIBC Core Fixed | CIBC Canadian vs. CIBC Clean Energy | CIBC Canadian vs. CIBC Conservative Fixed | CIBC Canadian vs. CIBC Qx Low |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |