Correlation Between CI Gold and Harvest Healthcare
Can any of the company-specific risk be diversified away by investing in both CI Gold and Harvest Healthcare 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 Harvest Healthcare 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 Harvest Healthcare Leaders, you can compare the effects of market volatilities on CI Gold and Harvest Healthcare 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 Harvest Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and Harvest Healthcare.
Diversification Opportunities for CI Gold and Harvest Healthcare
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CGXF and Harvest is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and Harvest Healthcare Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Healthcare 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 Harvest Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Healthcare has no effect on the direction of CI Gold i.e., CI Gold and Harvest Healthcare go up and down completely randomly.
Pair Corralation between CI Gold and Harvest Healthcare
Assuming the 90 days trading horizon CI Gold Giants is expected to under-perform the Harvest Healthcare. In addition to that, CI Gold is 2.78 times more volatile than Harvest Healthcare Leaders. It trades about -0.25 of its total potential returns per unit of risk. Harvest Healthcare Leaders is currently generating about -0.08 per unit of volatility. If you would invest 832.00 in Harvest Healthcare Leaders on August 30, 2024 and sell it today you would lose (11.00) from holding Harvest Healthcare Leaders or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Gold Giants vs. Harvest Healthcare Leaders
Performance |
| Timeline |
| CI Gold Giants |
| Harvest Healthcare |
CI Gold and Harvest Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Gold and Harvest Healthcare
The main advantage of trading using opposite CI Gold and Harvest Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold position performs unexpectedly, Harvest Healthcare 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 Harvest Healthcare will offset losses from the drop in Harvest Healthcare's 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 |
| Harvest Healthcare vs. BMO Covered Call | Harvest Healthcare vs. First Asset Tech | Harvest Healthcare vs. Harvest Equal Weight | Harvest Healthcare vs. First Asset Energy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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