Correlation Between CI Gold and Evolve Banks
Can any of the company-specific risk be diversified away by investing in both CI Gold and Evolve Banks 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 Gold and Evolve Banks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Gold Giants and Evolve Banks Enhanced, you can compare the effects of market volatilities on CI Gold and Evolve Banks 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 Gold with a short position of Evolve Banks. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and Evolve Banks.
Diversification Opportunities for CI Gold and Evolve Banks
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CGXF and Evolve is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and Evolve Banks Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Banks Enhanced and CI Gold 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 Gold Giants are associated (or correlated) with Evolve Banks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Banks Enhanced has no effect on the direction of CI Gold i.e., CI Gold and Evolve Banks go up and down completely randomly.
Pair Corralation between CI Gold and Evolve Banks
Assuming the 90 days trading horizon CI Gold Giants is expected to generate 2.02 times more return on investment than Evolve Banks. However, CI Gold is 2.02 times more volatile than Evolve Banks Enhanced. It trades about 0.25 of its potential returns per unit of risk. Evolve Banks Enhanced is currently generating about -0.05 per unit of risk. If you would invest 1,057 in CI Gold Giants on September 13, 2024 and sell it today you would earn a total of 90.00 from holding CI Gold Giants or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Gold Giants vs. Evolve Banks Enhanced
Performance |
| Timeline |
| CI Gold Giants |
| Evolve Banks Enhanced |
CI Gold and Evolve Banks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Gold and Evolve Banks
The main advantage of trading using opposite CI Gold and Evolve Banks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold position performs unexpectedly, Evolve Banks 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 Evolve Banks will offset losses from the drop in Evolve Banks' long position.| CI Gold vs. First Asset Energy | CI Gold vs. First Asset Tech | CI Gold vs. Harvest Equal Weight | CI Gold vs. CI Canada Lifeco |
| Evolve Banks vs. Evolve Global Healthcare | Evolve Banks vs. Evolve Global Materials | Evolve Banks vs. Evolve Canadian Banks | Evolve Banks vs. Harvest Bank Leaders |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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