Correlation Between Canadian Imperial and British Amer
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and British Amer 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 Canadian Imperial and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and biOasis Technologies, you can compare the effects of market volatilities on Canadian Imperial and British Amer 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 Canadian Imperial with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and British Amer.
Diversification Opportunities for Canadian Imperial and British Amer
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canadian and British is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and British Amer go up and down completely randomly.
Pair Corralation between Canadian Imperial and British Amer
Assuming the 90 days trading horizon Canadian Imperial is expected to generate 152.35 times less return on investment than British Amer. But when comparing it to its historical volatility, Canadian Imperial Bank is 138.15 times less risky than British Amer. It trades about 0.08 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18.00 in biOasis Technologies on September 2, 2024 and sell it today you would earn a total of 108.00 from holding biOasis Technologies or generate 600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Canadian Imperial Bank vs. biOasis Technologies
Performance |
| Timeline |
| Canadian Imperial Bank |
| biOasis Technologies |
Canadian Imperial and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and British Amer
The main advantage of trading using opposite Canadian Imperial and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Canadian Imperial vs. Computer Modelling Group | Canadian Imperial vs. TGS Esports | Canadian Imperial vs. Richelieu Hardware | Canadian Imperial vs. CVW CleanTech |
| British Amer vs. Canadian Imperial Bank | British Amer vs. Pollard Banknote Limited | British Amer vs. US Financial 15 | British Amer vs. High Liner Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |