Correlation Between CI Marret and CI Global
Can any of the company-specific risk be diversified away by investing in both CI Marret and CI Global 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 Global 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 Global Real, you can compare the effects of market volatilities on CI Marret and CI Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Marret and CI Global.
Diversification Opportunities for CI Marret and CI Global
Very weak diversification
The 3 months correlation between CMAR and CGRA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CI Marret Alternative and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Real has no effect on the direction of CI Marret i.e., CI Marret and CI Global go up and down completely randomly.
Pair Corralation between CI Marret and CI Global
Assuming the 90 days trading horizon CI Marret is expected to generate 1.58 times less return on investment than CI Global. But when comparing it to its historical volatility, CI Marret Alternative is 1.75 times less risky than CI Global. It trades about 0.05 of its potential returns per unit of risk. CI Global Real is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,957 in CI Global Real on November 19, 2024 and sell it today you would earn a total of 284.00 from holding CI Global Real or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CI Marret Alternative vs. CI Global Real
Performance |
| Timeline |
| CI Marret Alternative |
| CI Global Real |
CI Marret and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Marret and CI Global
The main advantage of trading using opposite CI Marret and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Marret position performs unexpectedly, CI Global 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 Global will offset losses from the drop in CI Global's long position.| CI Marret vs. CI Munro Alternative | CI Marret vs. CI Lawrence Park | CI Marret vs. CI Enhanced Short | CI Marret vs. CI Enhanced Government |
| CI Global vs. CI Global REIT | CI Global vs. CI Global Infrastructure | CI Global vs. CI Global Asset | CI Global vs. CI Marret Alternative |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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