Correlation Between CI Financial and Dream Office
Can any of the company-specific risk be diversified away by investing in both CI Financial and Dream Office 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 Dream Office 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 Dream Office Real, you can compare the effects of market volatilities on CI Financial and Dream Office 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 Dream Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Dream Office.
Diversification Opportunities for CI Financial and Dream Office
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CIX and Dream is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Dream Office Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Office Real 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 Dream Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Office Real has no effect on the direction of CI Financial i.e., CI Financial and Dream Office go up and down completely randomly.
Pair Corralation between CI Financial and Dream Office
Assuming the 90 days trading horizon CI Financial Corp is expected to generate 1.04 times more return on investment than Dream Office. However, CI Financial is 1.04 times more volatile than Dream Office Real. It trades about 0.37 of its potential returns per unit of risk. Dream Office Real is currently generating about -0.34 per unit of risk. If you would invest 2,126 in CI Financial Corp on August 24, 2024 and sell it today you would earn a total of 269.00 from holding CI Financial Corp or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Financial Corp vs. Dream Office Real
Performance |
| Timeline |
| CI Financial Corp |
| Dream Office Real |
CI Financial and Dream Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Dream Office
The main advantage of trading using opposite CI Financial and Dream Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Dream Office 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 Dream Office will offset losses from the drop in Dream Office'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 |
| Dream Office vs. Berkshire Hathaway CDR | Dream Office vs. Microsoft Corp CDR | Dream Office vs. Apple Inc CDR | Dream Office vs. Alphabet Inc CDR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |