Correlation Between CI Financial and Cariboo Rose
Can any of the company-specific risk be diversified away by investing in both CI Financial and Cariboo Rose 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 Cariboo Rose 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 Cariboo Rose Resources, you can compare the effects of market volatilities on CI Financial and Cariboo Rose 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 Cariboo Rose. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Cariboo Rose.
Diversification Opportunities for CI Financial and Cariboo Rose
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIX and Cariboo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Cariboo Rose Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cariboo Rose Resources 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 Cariboo Rose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cariboo Rose Resources has no effect on the direction of CI Financial i.e., CI Financial and Cariboo Rose go up and down completely randomly.
Pair Corralation between CI Financial and Cariboo Rose
Assuming the 90 days trading horizon CI Financial is expected to generate 3.11 times less return on investment than Cariboo Rose. But when comparing it to its historical volatility, CI Financial Corp is 4.66 times less risky than Cariboo Rose. It trades about 0.08 of its potential returns per unit of risk. Cariboo Rose Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Cariboo Rose Resources on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Cariboo Rose Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CI Financial Corp vs. Cariboo Rose Resources
Performance |
| Timeline |
| CI Financial Corp |
| Cariboo Rose Resources |
CI Financial and Cariboo Rose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Cariboo Rose
The main advantage of trading using opposite CI Financial and Cariboo Rose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Cariboo Rose 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 Cariboo Rose will offset losses from the drop in Cariboo Rose's long position.| CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Canadian Western Bank | CI Financial vs. Great West Lifeco |
| Cariboo Rose vs. CI Financial Corp | Cariboo Rose vs. SPoT Coffee | Cariboo Rose vs. Renoworks Software | Cariboo Rose vs. Caribbean Utilities |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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