Correlation Between CI Global and EcoSynthetix
Can any of the company-specific risk be diversified away by investing in both CI Global and EcoSynthetix 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 EcoSynthetix 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 EcoSynthetix, you can compare the effects of market volatilities on CI Global and EcoSynthetix 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 EcoSynthetix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and EcoSynthetix.
Diversification Opportunities for CI Global and EcoSynthetix
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CGRA and EcoSynthetix is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Real and EcoSynthetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EcoSynthetix 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 EcoSynthetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EcoSynthetix has no effect on the direction of CI Global i.e., CI Global and EcoSynthetix go up and down completely randomly.
Pair Corralation between CI Global and EcoSynthetix
Assuming the 90 days trading horizon CI Global Real is expected to generate 0.3 times more return on investment than EcoSynthetix. However, CI Global Real is 3.35 times less risky than EcoSynthetix. It trades about 0.06 of its potential returns per unit of risk. EcoSynthetix is currently generating about -0.08 per unit of risk. If you would invest 2,282 in CI Global Real on August 29, 2024 and sell it today you would earn a total of 33.00 from holding CI Global Real or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
CI Global Real vs. EcoSynthetix
Performance |
| Timeline |
| CI Global Real |
| EcoSynthetix |
CI Global and EcoSynthetix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and EcoSynthetix
The main advantage of trading using opposite CI Global and EcoSynthetix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, EcoSynthetix 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 EcoSynthetix will offset losses from the drop in EcoSynthetix'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 |
| EcoSynthetix vs. DIRTT Environmental Solutions | EcoSynthetix vs. 5N Plus | EcoSynthetix vs. Colabor Group | EcoSynthetix vs. TeraGo Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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