Correlation Between CI Gold and First Asset
Can any of the company-specific risk be diversified away by investing in both CI Gold and First Asset 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 First Asset 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 First Asset Energy, you can compare the effects of market volatilities on CI Gold and First Asset 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 First Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and First Asset.
Diversification Opportunities for CI Gold and First Asset
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CGXF and First is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and First Asset Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Asset Energy 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 First Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Asset Energy has no effect on the direction of CI Gold i.e., CI Gold and First Asset go up and down completely randomly.
Pair Corralation between CI Gold and First Asset
Assuming the 90 days trading horizon CI Gold Giants is expected to generate 1.54 times more return on investment than First Asset. However, CI Gold is 1.54 times more volatile than First Asset Energy. It trades about 0.03 of its potential returns per unit of risk. First Asset Energy is currently generating about -0.04 per unit of risk. If you would invest 1,068 in CI Gold Giants on August 30, 2024 and sell it today you would earn a total of 24.00 from holding CI Gold Giants or generate 2.25% 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. First Asset Energy
Performance |
| Timeline |
| CI Gold Giants |
| First Asset Energy |
CI Gold and First Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Gold and First Asset
The main advantage of trading using opposite CI Gold and First Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold position performs unexpectedly, First Asset 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 First Asset will offset losses from the drop in First Asset'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 |
| First Asset vs. CI Gold Giants | First Asset vs. First Asset Tech | First Asset vs. CI Canada Lifeco | First Asset vs. Harvest Healthcare 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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