Correlation Between CI Global and CI Marret
Can any of the company-specific risk be diversified away by investing in both CI Global and CI Marret 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 CI Global and CI Marret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Real and CI Marret Alternative, you can compare the effects of market volatilities on CI Global and CI Marret 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 CI Global with a short position of CI Marret. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and CI Marret.
Diversification Opportunities for CI Global and CI Marret
Very weak diversification
The 3 months correlation between CGRA and CMAR is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Real and CI Marret Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Marret Alternative and CI 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 CI Global Real are associated (or correlated) with CI Marret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Marret Alternative has no effect on the direction of CI Global i.e., CI Global and CI Marret go up and down completely randomly.
Pair Corralation between CI Global and CI Marret
Assuming the 90 days trading horizon CI Global Real is expected to under-perform the CI Marret. In addition to that, CI Global is 2.33 times more volatile than CI Marret Alternative. It trades about -0.19 of its total potential returns per unit of risk. CI Marret Alternative is currently generating about -0.14 per unit of volatility. If you would invest 1,818 in CI Marret Alternative on August 25, 2024 and sell it today you would lose (11.00) from holding CI Marret Alternative or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Global Real vs. CI Marret Alternative
Performance |
| Timeline |
| CI Global Real |
| CI Marret Alternative |
CI Global and CI Marret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and CI Marret
The main advantage of trading using opposite CI Global and CI Marret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, CI Marret 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 CI Marret will offset losses from the drop in CI Marret's long position.| CI Global vs. CI Global REIT | CI Global vs. CI Global Infrastructure | CI Global vs. CI Global Asset | CI Global vs. CI Marret Alternative |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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