Correlation Between CI Global and RBC Global
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By analyzing existing cross correlation between CI Global Alpha and RBC Global Technology, you can compare the effects of market volatilities on CI Global and RBC Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and RBC Global.
Diversification Opportunities for CI Global and RBC Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIG18006 and RBC is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Alpha and RBC Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Technology 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Technology has no effect on the direction of CI Global i.e., CI Global and RBC Global go up and down completely randomly.
Pair Corralation between CI Global and RBC Global
Assuming the 90 days trading horizon CI Global Alpha is expected to generate 1.14 times more return on investment than RBC Global. However, CI Global is 1.14 times more volatile than RBC Global Technology. It trades about 0.13 of its potential returns per unit of risk. RBC Global Technology is currently generating about 0.12 per unit of risk. If you would invest 4,696 in CI Global Alpha on August 26, 2024 and sell it today you would earn a total of 5,680 from holding CI Global Alpha or generate 120.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
CI Global Alpha vs. RBC Global Technology
Performance |
| Timeline |
| CI Global Alpha |
| RBC Global Technology |
CI Global and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and RBC Global
The main advantage of trading using opposite CI Global and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, RBC Global 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 Global will offset losses from the drop in RBC Global's long position.| CI Global vs. RBC Select Balanced | CI Global vs. RBC Portefeuille de | CI Global vs. TD Comfort Balanced | CI Global vs. RBC Global Equity |
| RBC Global vs. Global Healthcare Income | RBC Global vs. CI Global Alpha | RBC Global vs. CI Global Alpha | RBC Global vs. Manulife Global Equity |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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