Correlation Between CI Marret and CI Yield
Can any of the company-specific risk be diversified away by investing in both CI Marret and CI Yield 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 Marret and CI Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Marret Alternative and CI Yield Enhanced, you can compare the effects of market volatilities on CI Marret and CI Yield 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 Marret with a short position of CI Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Marret and CI Yield.
Diversification Opportunities for CI Marret and CI Yield
Poor diversification
The 3 months correlation between CMAR and CAGG is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CI Marret Alternative and CI Yield Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Yield Enhanced and CI Marret 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 Marret Alternative are associated (or correlated) with CI Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Yield Enhanced has no effect on the direction of CI Marret i.e., CI Marret and CI Yield go up and down completely randomly.
Pair Corralation between CI Marret and CI Yield
Assuming the 90 days trading horizon CI Marret Alternative is expected to generate 0.92 times more return on investment than CI Yield. However, CI Marret Alternative is 1.08 times less risky than CI Yield. It trades about 0.18 of its potential returns per unit of risk. CI Yield Enhanced is currently generating about 0.1 per unit of risk. If you would invest 1,807 in CI Marret Alternative on September 3, 2024 and sell it today you would earn a total of 22.00 from holding CI Marret Alternative or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Marret Alternative vs. CI Yield Enhanced
Performance |
| Timeline |
| CI Marret Alternative |
| CI Yield Enhanced |
CI Marret and CI Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Marret and CI Yield
The main advantage of trading using opposite CI Marret and CI Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Marret position performs unexpectedly, CI Yield 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 CI Yield will offset losses from the drop in CI Yield's long position.| CI Marret vs. First Asset Energy | CI Marret vs. First Asset Tech | CI Marret vs. Harvest Equal Weight | CI Marret vs. CI Canada Lifeco |
| CI Yield vs. BMO Short Corporate | CI Yield vs. BMO High Yield | CI Yield vs. iShares Core Canadian | CI Yield vs. Harvest Global REIT |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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