Correlation Between CI Global and Harvest Global
Can any of the company-specific risk be diversified away by investing in both CI Global and Harvest Global 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 Global 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 Global REIT, you can compare the effects of market volatilities on CI Global and Harvest Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Harvest Global.
Diversification Opportunities for CI Global and Harvest Global
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CLML and Harvest is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Climate and Harvest Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Global REIT 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Global REIT has no effect on the direction of CI Global i.e., CI Global and Harvest Global go up and down completely randomly.
Pair Corralation between CI Global and Harvest Global
Assuming the 90 days trading horizon CI Global Climate is expected to generate 1.65 times more return on investment than Harvest Global. However, CI Global is 1.65 times more volatile than Harvest Global REIT. It trades about 0.09 of its potential returns per unit of risk. Harvest Global REIT is currently generating about 0.13 per unit of risk. If you would invest 2,968 in CI Global Climate on August 28, 2024 and sell it today you would earn a total of 458.00 from holding CI Global Climate or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Global Climate vs. Harvest Global REIT
Performance |
| Timeline |
| CI Global Climate |
| Harvest Global REIT |
CI Global and Harvest Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Harvest Global
The main advantage of trading using opposite CI Global and Harvest Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Harvest Global 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 Global will offset losses from the drop in Harvest Global's long position.| CI Global vs. Vanguard FTSE Canada | CI Global vs. Vanguard Canadian Aggregate | CI Global vs. Vanguard Total Market | CI Global vs. Vanguard FTSE Emerging |
| Harvest Global vs. iShares SPTSX Capped | Harvest Global vs. iShares Canadian Select | Harvest Global vs. iShares SPTSX Capped | Harvest Global vs. iShares Diversified Monthly |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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