Correlation Between CI Global and RBC Select
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By analyzing existing cross correlation between CI Global Alpha and RBC Select Balanced, you can compare the effects of market volatilities on CI Global and RBC Select 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 RBC Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and RBC Select.
Diversification Opportunities for CI Global and RBC Select
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIG18006 and RBC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Alpha and RBC Select Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Select Balanced 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 Alpha are associated (or correlated) with RBC Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Select Balanced has no effect on the direction of CI Global i.e., CI Global and RBC Select go up and down completely randomly.
Pair Corralation between CI Global and RBC Select
Assuming the 90 days trading horizon CI Global Alpha is expected to generate 4.26 times more return on investment than RBC Select. However, CI Global is 4.26 times more volatile than RBC Select Balanced. It trades about 0.24 of its potential returns per unit of risk. RBC Select Balanced is currently generating about 0.14 per unit of risk. If you would invest 9,696 in CI Global Alpha on August 30, 2024 and sell it today you would earn a total of 805.00 from holding CI Global Alpha or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
CI Global Alpha vs. RBC Select Balanced
Performance |
| Timeline |
| CI Global Alpha |
| RBC Select Balanced |
CI Global and RBC Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and RBC Select
The main advantage of trading using opposite CI Global and RBC Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, RBC Select 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 RBC Select will offset losses from the drop in RBC Select's long position.| CI Global vs. Fidelity Tactical High | CI Global vs. Bloom Select Income | CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha |
| RBC Select vs. TD Comfort Balanced | RBC Select vs. Mawer Balanced | RBC Select vs. iShares Canadian HYBrid | RBC Select vs. Altagas Cum Red |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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