Correlation Between Canadian Imperial and Guild Holdings
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Guild Holdings 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 Guild Holdings 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 Guild Holdings Co, you can compare the effects of market volatilities on Canadian Imperial and Guild Holdings 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 Guild Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Guild Holdings.
Diversification Opportunities for Canadian Imperial and Guild Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and Guild is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Guild Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Holdings 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 Guild Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Holdings has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Guild Holdings go up and down completely randomly.
Pair Corralation between Canadian Imperial and Guild Holdings
Allowing for the 90-day total investment horizon Canadian Imperial Bank is expected to generate 0.36 times more return on investment than Guild Holdings. However, Canadian Imperial Bank is 2.81 times less risky than Guild Holdings. It trades about 0.24 of its potential returns per unit of risk. Guild Holdings Co is currently generating about -0.03 per unit of risk. If you would invest 6,330 in Canadian Imperial Bank on August 28, 2024 and sell it today you would earn a total of 211.00 from holding Canadian Imperial Bank or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Imperial Bank vs. Guild Holdings Co
Performance |
| Timeline |
| Canadian Imperial Bank |
| Guild Holdings |
Canadian Imperial and Guild Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and Guild Holdings
The main advantage of trading using opposite Canadian Imperial and Guild Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Guild Holdings 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 Guild Holdings will offset losses from the drop in Guild Holdings' long position.| Canadian Imperial vs. Nu Holdings | Canadian Imperial vs. HSBC Holdings PLC | Canadian Imperial vs. Bank of Montreal | Canadian Imperial vs. Bank of Nova |
| Guild Holdings vs. Mr Cooper Group | Guild Holdings vs. Encore Capital Group | Guild Holdings vs. CNFinance Holdings | Guild Holdings vs. Security National Financial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |