Correlation Between CI Marret and IShares Global
Can any of the company-specific risk be diversified away by investing in both CI Marret and IShares 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 IShares 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 iShares Global Infrastructure, you can compare the effects of market volatilities on CI Marret and IShares 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Marret and IShares Global.
Diversification Opportunities for CI Marret and IShares Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CMAR and IShares is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CI Marret Alternative and iShares Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Infra 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Infra has no effect on the direction of CI Marret i.e., CI Marret and IShares Global go up and down completely randomly.
Pair Corralation between CI Marret and IShares Global
Assuming the 90 days trading horizon CI Marret is expected to generate 54.75 times less return on investment than IShares Global. But when comparing it to its historical volatility, CI Marret Alternative is 2.61 times less risky than IShares Global. It trades about 0.02 of its potential returns per unit of risk. iShares Global Infrastructure is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 4,774 in iShares Global Infrastructure on August 29, 2024 and sell it today you would earn a total of 323.00 from holding iShares Global Infrastructure or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Marret Alternative vs. iShares Global Infrastructure
Performance |
| Timeline |
| CI Marret Alternative |
| iShares Global Infra |
CI Marret and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Marret and IShares Global
The main advantage of trading using opposite CI Marret and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Marret position performs unexpectedly, IShares 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 IShares Global will offset losses from the drop in IShares Global's long position.| CI Marret vs. Global Atomic Corp | CI Marret vs. enCore Energy Corp | CI Marret vs. Fission Uranium Corp | CI Marret vs. NexGen Energy |
| IShares Global vs. CI Global REIT | IShares Global vs. CI Global Real | IShares Global vs. CI Marret Alternative | IShares Global vs. CI Global 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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