Correlation Between CI Global and IShares Core
Can any of the company-specific risk be diversified away by investing in both CI Global and IShares Core 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 IShares Core 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 iShares Core Equity, you can compare the effects of market volatilities on CI Global and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and IShares Core.
Diversification Opportunities for CI Global and IShares Core
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CGRA and IShares is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Real and iShares Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Equity 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Equity has no effect on the direction of CI Global i.e., CI Global and IShares Core go up and down completely randomly.
Pair Corralation between CI Global and IShares Core
Assuming the 90 days trading horizon CI Global is expected to generate 1.08 times less return on investment than IShares Core. In addition to that, CI Global is 1.62 times more volatile than iShares Core Equity. It trades about 0.18 of its total potential returns per unit of risk. iShares Core Equity is currently generating about 0.32 per unit of volatility. If you would invest 3,382 in iShares Core Equity on September 12, 2024 and sell it today you would earn a total of 104.00 from holding iShares Core Equity or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI Global Real vs. iShares Core Equity
Performance |
| Timeline |
| CI Global Real |
| iShares Core Equity |
CI Global and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and IShares Core
The main advantage of trading using opposite CI Global and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| CI Global vs. Guardian i3 Global | CI Global vs. CI Enhanced Short | CI Global vs. BMO Aggregate Bond | CI Global vs. iShares Canadian HYBrid |
| IShares Core vs. Guardian i3 Global | IShares Core vs. CI Global Real | IShares Core vs. CI Enhanced Short | IShares Core vs. BMO Aggregate Bond |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |