Correlation Between CI Global and Harvest Eli
Can any of the company-specific risk be diversified away by investing in both CI Global and Harvest Eli 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 Harvest Eli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Alpha and Harvest Eli Lilly, you can compare the effects of market volatilities on CI Global and Harvest Eli 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 Harvest Eli. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Harvest Eli.
Diversification Opportunities for CI Global and Harvest Eli
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CINV and Harvest is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Alpha and Harvest Eli Lilly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Eli Lilly 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 Harvest Eli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Eli Lilly has no effect on the direction of CI Global i.e., CI Global and Harvest Eli go up and down completely randomly.
Pair Corralation between CI Global and Harvest Eli
Assuming the 90 days trading horizon CI Global Alpha is expected to generate 0.7 times more return on investment than Harvest Eli. However, CI Global Alpha is 1.44 times less risky than Harvest Eli. It trades about 0.12 of its potential returns per unit of risk. Harvest Eli Lilly is currently generating about -0.06 per unit of risk. If you would invest 1,224 in CI Global Alpha on November 2, 2024 and sell it today you would earn a total of 1,696 from holding CI Global Alpha or generate 138.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.63% |
| Values | Daily Returns |
CI Global Alpha vs. Harvest Eli Lilly
Performance |
| Timeline |
| CI Global Alpha |
| Harvest Eli Lilly |
CI Global and Harvest Eli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Harvest Eli
The main advantage of trading using opposite CI Global and Harvest Eli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Harvest Eli 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 Harvest Eli will offset losses from the drop in Harvest Eli's long position.| CI Global vs. NBI High Yield | CI Global vs. NBI Unconstrained Fixed | CI Global vs. Mackenzie Developed ex North | CI Global vs. BMO Short Term Bond |
| Harvest Eli vs. Harvest Premium Yield | Harvest Eli vs. Harvest Balanced Income | Harvest Eli vs. Harvest Diversified High | Harvest Eli vs. Harvest Energy 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |