Correlation Between CIBC Qx and CIBC Multifactor
Can any of the company-specific risk be diversified away by investing in both CIBC Qx and CIBC Multifactor 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 Qx and CIBC Multifactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Qx Low and CIBC Multifactor Equity, you can compare the effects of market volatilities on CIBC Qx and CIBC Multifactor 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 Qx with a short position of CIBC Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Qx and CIBC Multifactor.
Diversification Opportunities for CIBC Qx and CIBC Multifactor
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 Qx Low and CIBC Multifactor Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Multifactor Equity and CIBC Qx 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 Qx Low are associated (or correlated) with CIBC Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Multifactor Equity has no effect on the direction of CIBC Qx i.e., CIBC Qx and CIBC Multifactor go up and down completely randomly.
Pair Corralation between CIBC Qx and CIBC Multifactor
If you would invest 1,963 in CIBC Qx Low on November 27, 2024 and sell it today you would earn a total of 78.00 from holding CIBC Qx Low or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CIBC Qx Low vs. CIBC Multifactor Equity
Performance |
| Timeline |
| CIBC Qx Low |
| CIBC Multifactor Equity |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CIBC Qx and CIBC Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIBC Qx and CIBC Multifactor
The main advantage of trading using opposite CIBC Qx and CIBC Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Qx position performs unexpectedly, CIBC Multifactor 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 Multifactor will offset losses from the drop in CIBC Multifactor's long position.| CIBC Qx vs. CIBC Core Fixed | CIBC Qx vs. CIBC Canadian Equity | CIBC Qx vs. CIBC Clean Energy | CIBC Qx vs. CIBC Conservative Fixed |
| CIBC Multifactor vs. CIBC Core Fixed | CIBC Multifactor vs. CIBC Canadian Equity | CIBC Multifactor vs. CIBC Clean Energy | CIBC Multifactor vs. CIBC Conservative Fixed |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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