Correlation Between CI Financial and Prospect Capital
Can any of the company-specific risk be diversified away by investing in both CI Financial and Prospect Capital 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 Prospect Capital 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 Prospect Capital, you can compare the effects of market volatilities on CI Financial and Prospect Capital 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 Prospect Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Prospect Capital.
Diversification Opportunities for CI Financial and Prospect Capital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIXXF and Prospect is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Prospect Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospect Capital 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 Prospect Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospect Capital has no effect on the direction of CI Financial i.e., CI Financial and Prospect Capital go up and down completely randomly.
Pair Corralation between CI Financial and Prospect Capital
If you would invest 1,212 in CI Financial Corp on August 24, 2024 and sell it today you would earn a total of 0.00 from holding CI Financial Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CI Financial Corp vs. Prospect Capital
Performance |
| Timeline |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Prospect Capital |
CI Financial and Prospect Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Prospect Capital
The main advantage of trading using opposite CI Financial and Prospect Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Prospect Capital 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 Prospect Capital will offset losses from the drop in Prospect Capital's long position.| CI Financial vs. Infosys Ltd ADR | CI Financial vs. Allient | CI Financial vs. Zhihu Inc ADR | CI Financial vs. Pinterest |
| Prospect Capital vs. PennyMac Mortgage Investment | Prospect Capital vs. SiriusPoint | Prospect Capital vs. Telephone and Data | Prospect Capital vs. ARMOUR Residential REIT |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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