Correlation Between CI Munro and BetaPro Crude
Can any of the company-specific risk be diversified away by investing in both CI Munro and BetaPro Crude 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 Munro and BetaPro Crude into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Munro Alternative and BetaPro Crude Oil, you can compare the effects of market volatilities on CI Munro and BetaPro Crude 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 Munro with a short position of BetaPro Crude. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Munro and BetaPro Crude.
Diversification Opportunities for CI Munro and BetaPro Crude
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CMAG and BetaPro is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CI Munro Alternative and BetaPro Crude Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro Crude Oil and CI Munro 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 Munro Alternative are associated (or correlated) with BetaPro Crude. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro Crude Oil has no effect on the direction of CI Munro i.e., CI Munro and BetaPro Crude go up and down completely randomly.
Pair Corralation between CI Munro and BetaPro Crude
Assuming the 90 days trading horizon CI Munro Alternative is expected to generate 0.53 times more return on investment than BetaPro Crude. However, CI Munro Alternative is 1.87 times less risky than BetaPro Crude. It trades about 0.12 of its potential returns per unit of risk. BetaPro Crude Oil is currently generating about -0.03 per unit of risk. If you would invest 3,779 in CI Munro Alternative on November 2, 2024 and sell it today you would earn a total of 157.00 from holding CI Munro Alternative or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CI Munro Alternative vs. BetaPro Crude Oil
Performance |
| Timeline |
| CI Munro Alternative |
| BetaPro Crude Oil |
CI Munro and BetaPro Crude Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Munro and BetaPro Crude
The main advantage of trading using opposite CI Munro and BetaPro Crude positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Munro position performs unexpectedly, BetaPro Crude 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 BetaPro Crude will offset losses from the drop in BetaPro Crude's long position.| CI Munro vs. CI Marret Alternative | CI Munro vs. Dynamic Active Global | CI Munro vs. CI Enhanced Short | CI Munro vs. CI Enhanced Government |
| BetaPro Crude vs. BetaPro Crude Oil | BetaPro Crude vs. BetaPro Natural Gas | BetaPro Crude vs. BetaPro Natural Gas | BetaPro Crude vs. BetaPro Canadian Gold |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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