Correlation Between CI Financial and Micron Technology,
Can any of the company-specific risk be diversified away by investing in both CI Financial and Micron Technology, 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 Micron Technology, 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 Micron Technology,, you can compare the effects of market volatilities on CI Financial and Micron Technology, 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 Micron Technology,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Micron Technology,.
Diversification Opportunities for CI Financial and Micron Technology,
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CIX and Micron is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Micron Technology, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology, 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 Micron Technology,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology, has no effect on the direction of CI Financial i.e., CI Financial and Micron Technology, go up and down completely randomly.
Pair Corralation between CI Financial and Micron Technology,
Assuming the 90 days trading horizon CI Financial is expected to generate 17.4 times less return on investment than Micron Technology,. But when comparing it to its historical volatility, CI Financial Corp is 23.49 times less risky than Micron Technology,. It trades about 0.09 of its potential returns per unit of risk. Micron Technology, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,007 in Micron Technology, on November 3, 2024 and sell it today you would earn a total of 87.00 from holding Micron Technology, or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Financial Corp vs. Micron Technology,
Performance |
| Timeline |
| CI Financial Corp |
| Micron Technology, |
CI Financial and Micron Technology, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Micron Technology,
The main advantage of trading using opposite CI Financial and Micron Technology, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Micron Technology, 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 Micron Technology, will offset losses from the drop in Micron Technology,'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 |
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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.
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