Correlation Between CI Financial and Colossus Resources
Can any of the company-specific risk be diversified away by investing in both CI Financial and Colossus Resources 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 Financial and Colossus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Financial Corp and Colossus Resources Corp, you can compare the effects of market volatilities on CI Financial and Colossus Resources 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 Financial with a short position of Colossus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Colossus Resources.
Diversification Opportunities for CI Financial and Colossus Resources
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIX and Colossus is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Colossus Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colossus Resources Corp and CI Financial 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 Financial Corp are associated (or correlated) with Colossus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colossus Resources Corp has no effect on the direction of CI Financial i.e., CI Financial and Colossus Resources go up and down completely randomly.
Pair Corralation between CI Financial and Colossus Resources
Assuming the 90 days trading horizon CI Financial Corp is expected to generate 1.48 times more return on investment than Colossus Resources. However, CI Financial is 1.48 times more volatile than Colossus Resources Corp. It trades about 0.21 of its potential returns per unit of risk. Colossus Resources Corp is currently generating about 0.1 per unit of risk. If you would invest 2,363 in CI Financial Corp on September 21, 2024 and sell it today you would earn a total of 723.00 from holding CI Financial Corp or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Financial Corp vs. Colossus Resources Corp
Performance |
| Timeline |
| CI Financial Corp |
| Colossus Resources Corp |
CI Financial and Colossus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Colossus Resources
The main advantage of trading using opposite CI Financial and Colossus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Colossus Resources 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 Colossus Resources will offset losses from the drop in Colossus Resources' long position.| CI Financial vs. Berkshire Hathaway CDR | CI Financial vs. E L Financial Corp | CI Financial vs. E L Financial 3 | CI Financial vs. Molson Coors Canada |
| Colossus Resources vs. Datable Technology Corp | Colossus Resources vs. Questor Technology | Colossus Resources vs. HPQ Silicon Resources | Colossus Resources vs. CI Financial Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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