Correlation Between CI Global and Canadian High
Can any of the company-specific risk be diversified away by investing in both CI Global and Canadian High 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 Global and Canadian High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Unconstrained and Canadian High Income, you can compare the effects of market volatilities on CI Global and Canadian High 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 Global with a short position of Canadian High. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Canadian High.
Diversification Opportunities for CI Global and Canadian High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CUBD and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Unconstrained and Canadian High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian High Income and CI Global 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 Global Unconstrained are associated (or correlated) with Canadian High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian High Income has no effect on the direction of CI Global i.e., CI Global and Canadian High go up and down completely randomly.
Pair Corralation between CI Global and Canadian High
Assuming the 90 days trading horizon CI Global Unconstrained is expected to generate 0.24 times more return on investment than Canadian High. However, CI Global Unconstrained is 4.16 times less risky than Canadian High. It trades about 0.09 of its potential returns per unit of risk. Canadian High Income is currently generating about 0.02 per unit of risk. If you would invest 1,997 in CI Global Unconstrained on October 14, 2024 and sell it today you would earn a total of 58.00 from holding CI Global Unconstrained or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 24.4% |
| Values | Daily Returns |
CI Global Unconstrained vs. Canadian High Income
Performance |
| Timeline |
| CI Global Unconstrained |
| Canadian High Income |
CI Global and Canadian High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Canadian High
The main advantage of trading using opposite CI Global and Canadian High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Canadian High 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 Canadian High will offset losses from the drop in Canadian High's long position.| CI Global vs. RBC Select Balanced | CI Global vs. PIMCO Monthly Income | CI Global vs. RBC Portefeuille de | CI Global vs. Edgepoint Global Portfolio |
| Canadian High vs. Blue Ribbon Income | Canadian High vs. MINT Income Fund | Canadian High vs. Energy Income | Canadian High vs. Brompton Lifeco Split |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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