Correlation Between CIBC International and CIBC Global
Can any of the company-specific risk be diversified away by investing in both CIBC International and CIBC 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 CIBC International and CIBC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC International Equity and CIBC Global Growth, you can compare the effects of market volatilities on CIBC International and CIBC 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 CIBC International with a short position of CIBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC International and CIBC Global.
Diversification Opportunities for CIBC International and CIBC Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIBC and CIBC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CIBC International Equity and CIBC Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Global Growth and CIBC International 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 CIBC International Equity are associated (or correlated) with CIBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Global Growth has no effect on the direction of CIBC International i.e., CIBC International and CIBC Global go up and down completely randomly.
Pair Corralation between CIBC International and CIBC Global
Assuming the 90 days trading horizon CIBC International Equity is expected to under-perform the CIBC Global. But the etf apears to be less risky and, when comparing its historical volatility, CIBC International Equity is 1.12 times less risky than CIBC Global. The etf trades about 0.0 of its potential returns per unit of risk. The CIBC Global Growth is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,961 in CIBC Global Growth on September 2, 2024 and sell it today you would earn a total of 163.00 from holding CIBC Global Growth or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIBC International Equity vs. CIBC Global Growth
Performance |
| Timeline |
| CIBC International Equity |
| CIBC Global Growth |
CIBC International and CIBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC International and CIBC Global
The main advantage of trading using opposite CIBC International and CIBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC International position performs unexpectedly, CIBC 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 CIBC Global will offset losses from the drop in CIBC Global's long position.| CIBC International vs. CIBC Global Growth | CIBC International vs. CIBC Flexible Yield | CIBC International vs. CIBC Active Investment | CIBC International vs. CIBC Conservative Fixed |
| CIBC Global vs. CIBC International Equity | CIBC Global vs. CIBC Flexible Yield | CIBC Global vs. Evolve Global Materials | CIBC Global vs. CIBC Equity Index |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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