Correlation Between CI Global and CI Global
Can any of the company-specific risk be diversified away by investing in both CI Global and CI Global 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 Global and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Infrastructure and CI Global Real, you can compare the effects of market volatilities on CI Global and CI 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and CI Global.
Diversification Opportunities for CI Global and CI Global
Good diversification
The 3 months correlation between CINF and CGRA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Infrastructure and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real 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 Infrastructure are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Real has no effect on the direction of CI Global i.e., CI Global and CI Global go up and down completely randomly.
Pair Corralation between CI Global and CI Global
Assuming the 90 days trading horizon CI Global Infrastructure is expected to generate 1.4 times more return on investment than CI Global. However, CI Global is 1.4 times more volatile than CI Global Real. It trades about 0.18 of its potential returns per unit of risk. CI Global Real is currently generating about 0.0 per unit of risk. If you would invest 2,631 in CI Global Infrastructure on October 21, 2024 and sell it today you would earn a total of 189.00 from holding CI Global Infrastructure or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
CI Global Infrastructure vs. CI Global Real
Performance |
| Timeline |
| CI Global Infrastructure |
| CI Global Real |
CI Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and CI Global
The main advantage of trading using opposite CI Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, CI 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 CI Global will offset losses from the drop in CI Global's long position.| CI Global vs. iShares Global Real | CI Global vs. iShares Global Monthly | CI Global vs. iShares Equal Weight | CI Global vs. iShares Jantzi Social |
| CI Global vs. CI Global REIT | CI Global vs. CI Global Infrastructure | CI Global vs. CI Global Asset | CI Global vs. CI Marret Alternative |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |