Correlation Between CI Global and Harvest Clean
Can any of the company-specific risk be diversified away by investing in both CI Global and Harvest Clean 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 Global and Harvest Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Climate and Harvest Clean Energy, you can compare the effects of market volatilities on CI Global and Harvest Clean 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 Global with a short position of Harvest Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Harvest Clean.
Diversification Opportunities for CI Global and Harvest Clean
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CLML and Harvest is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Climate and Harvest Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Clean Energy and CI Global 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 Global Climate are associated (or correlated) with Harvest Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Clean Energy has no effect on the direction of CI Global i.e., CI Global and Harvest Clean go up and down completely randomly.
Pair Corralation between CI Global and Harvest Clean
Assuming the 90 days trading horizon CI Global Climate is expected to generate 2.18 times more return on investment than Harvest Clean. However, CI Global is 2.18 times more volatile than Harvest Clean Energy. It trades about 0.1 of its potential returns per unit of risk. Harvest Clean Energy is currently generating about -0.14 per unit of risk. If you would invest 3,316 in CI Global Climate on November 3, 2024 and sell it today you would earn a total of 179.00 from holding CI Global Climate or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CI Global Climate vs. Harvest Clean Energy
Performance |
| Timeline |
| CI Global Climate |
| Harvest Clean Energy |
CI Global and Harvest Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Harvest Clean
The main advantage of trading using opposite CI Global and Harvest Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Harvest Clean 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 Harvest Clean will offset losses from the drop in Harvest Clean's long position.| CI Global vs. NBI High Yield | CI Global vs. NBI Unconstrained Fixed | CI Global vs. Mackenzie Developed ex North | CI Global vs. BMO Short Term Bond |
| Harvest Clean vs. Harvest Premium Yield | Harvest Clean vs. Harvest Balanced Income | Harvest Clean vs. Harvest Diversified High | Harvest Clean vs. Harvest Energy Leaders |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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