Correlation Between CI Financial and TUT Fitness
Can any of the company-specific risk be diversified away by investing in both CI Financial and TUT Fitness 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 TUT Fitness 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 TUT Fitness Group, you can compare the effects of market volatilities on CI Financial and TUT Fitness 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 TUT Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and TUT Fitness.
Diversification Opportunities for CI Financial and TUT Fitness
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIX and TUT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and TUT Fitness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUT Fitness Group 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 TUT Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUT Fitness Group has no effect on the direction of CI Financial i.e., CI Financial and TUT Fitness go up and down completely randomly.
Pair Corralation between CI Financial and TUT Fitness
Assuming the 90 days trading horizon CI Financial is expected to generate 5.04 times less return on investment than TUT Fitness. But when comparing it to its historical volatility, CI Financial Corp is 9.42 times less risky than TUT Fitness. It trades about 0.09 of its potential returns per unit of risk. TUT Fitness Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 60.00 in TUT Fitness Group on August 30, 2024 and sell it today you would lose (52.00) from holding TUT Fitness Group or give up 86.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Financial Corp vs. TUT Fitness Group
Performance |
| Timeline |
| CI Financial Corp |
| TUT Fitness Group |
CI Financial and TUT Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and TUT Fitness
The main advantage of trading using opposite CI Financial and TUT Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, TUT Fitness 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 TUT Fitness will offset losses from the drop in TUT Fitness' long position.| CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Canadian Western Bank | CI Financial vs. Great West Lifeco |
| TUT Fitness vs. Eros Resources Corp | TUT Fitness vs. Apple Inc CDR | TUT Fitness vs. European Residential Real | TUT Fitness vs. Canadian Utilities Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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