Correlation Between Canadian Imperial and Golden Star
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Golden Star 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 Golden Star 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 Golden Star Acquisition, you can compare the effects of market volatilities on Canadian Imperial and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Golden Star.
Diversification Opportunities for Canadian Imperial and Golden Star
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canadian and Golden is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Golden Star go up and down completely randomly.
Pair Corralation between Canadian Imperial and Golden Star
Allowing for the 90-day total investment horizon Canadian Imperial Bank is expected to generate 0.04 times more return on investment than Golden Star. However, Canadian Imperial Bank is 26.04 times less risky than Golden Star. It trades about 0.03 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about -0.25 per unit of risk. If you would invest 6,276 in Canadian Imperial Bank on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Canadian Imperial Bank or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Canadian Imperial Bank vs. Golden Star Acquisition
Performance |
| Timeline |
| Canadian Imperial Bank |
| Golden Star Acquisition |
Canadian Imperial and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and Golden Star
The main advantage of trading using opposite Canadian Imperial and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Canadian Imperial vs. Nu Holdings | Canadian Imperial vs. Bank of America | Canadian Imperial vs. HSBC Holdings PLC | Canadian Imperial vs. Royal Bank of |
| Golden Star vs. Paysafe | Golden Star vs. Rocky Brands | Golden Star vs. Valneva SE ADR | Golden Star vs. MobileSmith |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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