Correlation Between Canadian High and CI Global
Can any of the company-specific risk be diversified away by investing in both Canadian High 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 Canadian High and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian High Income and CI Global Unconstrained, you can compare the effects of market volatilities on Canadian High 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 Canadian High with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian High and CI Global.
Diversification Opportunities for Canadian High and CI Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and CUBD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian High Income and CI Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Unconstrained and Canadian High 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 Canadian High Income 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 Unconstrained has no effect on the direction of Canadian High i.e., Canadian High and CI Global go up and down completely randomly.
Pair Corralation between Canadian High and CI Global
Assuming the 90 days trading horizon Canadian High is expected to generate 1.29 times less return on investment than CI Global. In addition to that, Canadian High is 3.78 times more volatile than CI Global Unconstrained. It trades about 0.02 of its total potential returns per unit of risk. CI Global Unconstrained is currently generating about 0.09 per unit of volatility. If you would invest 1,997 in CI Global Unconstrained on October 28, 2024 and sell it today you would earn a total of 66.00 from holding CI Global Unconstrained or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 26.81% |
| Values | Daily Returns |
Canadian High Income vs. CI Global Unconstrained
Performance |
| Timeline |
| Canadian High Income |
| CI Global Unconstrained |
Canadian High and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian High and CI Global
The main advantage of trading using opposite Canadian High and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian High 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.| Canadian High vs. Blue Ribbon Income | Canadian High vs. MINT Income Fund | Canadian High vs. Energy Income | Canadian High vs. Brompton Lifeco Split |
| CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. CI Global Alpha | CI Global vs. CDSPI Global Growth |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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