Correlation Between CI Global and CI Global
Can any of the company-specific risk be diversified away by investing in both CI Global and CI Global 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 Global 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 Global Financial, you can compare the effects of market volatilities on CI Global and CI Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and CI Global.
Diversification Opportunities for CI Global and CI Global
Weak diversification
The 3 months correlation between CGRA and FSF is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Real and CI Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Financial 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Financial has no effect on the direction of CI Global i.e., CI Global and CI Global go up and down completely randomly.
Pair Corralation between CI Global and CI Global
Assuming the 90 days trading horizon CI Global is expected to generate 8.94 times less return on investment than CI Global. But when comparing it to its historical volatility, CI Global Real is 1.04 times less risky than CI Global. It trades about 0.04 of its potential returns per unit of risk. CI Global Financial is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,895 in CI Global Financial on August 28, 2024 and sell it today you would earn a total of 158.00 from holding CI Global Financial or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CI Global Real vs. CI Global Financial
Performance |
| Timeline |
| CI Global Real |
| CI Global Financial |
CI Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and CI Global
The main advantage of trading using opposite CI Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, CI Global 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 Global will offset losses from the drop in CI Global'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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