Correlation Between CIBC Global and CIBC International
Can any of the company-specific risk be diversified away by investing in both CIBC Global and CIBC International 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 International 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 International Equity, you can compare the effects of market volatilities on CIBC Global and CIBC International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Global and CIBC International.
Diversification Opportunities for CIBC Global and CIBC International
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIBC and CIBC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Global Growth and CIBC International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC International Equity has no effect on the direction of CIBC Global i.e., CIBC Global and CIBC International go up and down completely randomly.
Pair Corralation between CIBC Global and CIBC International
Assuming the 90 days trading horizon CIBC Global Growth is expected to generate 1.0 times more return on investment than CIBC International. However, CIBC Global is 1.0 times more volatile than CIBC International Equity. It trades about 0.1 of its potential returns per unit of risk. CIBC International Equity is currently generating about 0.05 per unit of risk. If you would invest 2,242 in CIBC Global Growth on September 3, 2024 and sell it today you would earn a total of 882.00 from holding CIBC Global Growth or generate 39.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIBC Global Growth vs. CIBC International Equity
Performance |
| Timeline |
| CIBC Global Growth |
| CIBC International Equity |
CIBC Global and CIBC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Global and CIBC International
The main advantage of trading using opposite CIBC Global and CIBC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Global position performs unexpectedly, CIBC International 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 International will offset losses from the drop in CIBC International'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 International vs. Fidelity Canadian High | CIBC International vs. Fidelity High Dividend | CIBC International vs. Fidelity High Dividend | CIBC International vs. Fidelity Dividend for |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |