Correlation Between CIBC Multifactor and CIBC Clean
Can any of the company-specific risk be diversified away by investing in both CIBC Multifactor and CIBC Clean 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 CIBC Multifactor and CIBC Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Multifactor Equity and CIBC Clean Energy, you can compare the effects of market volatilities on CIBC Multifactor and CIBC Clean 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 CIBC Multifactor with a short position of CIBC Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Multifactor and CIBC Clean.
Diversification Opportunities for CIBC Multifactor and CIBC Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIBC and CIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Multifactor Equity and CIBC Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Clean Energy and CIBC Multifactor 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 CIBC Multifactor Equity are associated (or correlated) with CIBC Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Clean Energy has no effect on the direction of CIBC Multifactor i.e., CIBC Multifactor and CIBC Clean go up and down completely randomly.
Pair Corralation between CIBC Multifactor and CIBC Clean
If you would invest (100.00) in CIBC Multifactor Equity on November 27, 2024 and sell it today you would earn a total of 100.00 from holding CIBC Multifactor Equity or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CIBC Multifactor Equity vs. CIBC Clean Energy
Performance |
| Timeline |
| CIBC Multifactor Equity |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| CIBC Clean Energy |
CIBC Multifactor and CIBC Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Multifactor and CIBC Clean
The main advantage of trading using opposite CIBC Multifactor and CIBC Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Multifactor position performs unexpectedly, CIBC Clean 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 CIBC Clean will offset losses from the drop in CIBC Clean's long position.| CIBC Multifactor vs. CIBC Core Fixed | CIBC Multifactor vs. CIBC Canadian Equity | CIBC Multifactor vs. CIBC Clean Energy | CIBC Multifactor vs. CIBC Conservative Fixed |
| CIBC Clean vs. CIBC Core Fixed | CIBC Clean vs. CIBC Canadian Equity | CIBC Clean vs. CIBC Conservative Fixed | CIBC Clean vs. CIBC Qx Low |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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