Correlation Between CI Global and Dynamic Global
Can any of the company-specific risk be diversified away by investing in both CI Global and Dynamic 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 Global and Dynamic Global 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 Dynamic Global Fixed, you can compare the effects of market volatilities on CI Global and Dynamic 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 Global with a short position of Dynamic Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Dynamic Global.
Diversification Opportunities for CI Global and Dynamic Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between CUBD and Dynamic is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Unconstrained and Dynamic Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynamic Global Fixed 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 Dynamic Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynamic Global Fixed has no effect on the direction of CI Global i.e., CI Global and Dynamic Global go up and down completely randomly.
Pair Corralation between CI Global and Dynamic Global
Assuming the 90 days trading horizon CI Global Unconstrained is expected to generate 1.0 times more return on investment than Dynamic Global. However, CI Global Unconstrained is 1.0 times less risky than Dynamic Global. It trades about 0.09 of its potential returns per unit of risk. Dynamic Global Fixed is currently generating about 0.06 per unit of risk. If you would invest 1,997 in CI Global Unconstrained on October 28, 2024 and sell it today you would earn a total of 66.00 from holding CI Global Unconstrained or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.84% |
| Values | Daily Returns |
CI Global Unconstrained vs. Dynamic Global Fixed
Performance |
| Timeline |
| CI Global Unconstrained |
| Dynamic Global Fixed |
CI Global and Dynamic Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Dynamic Global
The main advantage of trading using opposite CI Global and Dynamic Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Dynamic 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 Dynamic Global will offset losses from the drop in Dynamic Global's long position.| CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. CI Global Alpha | CI Global vs. CDSPI Global Growth |
| Dynamic Global vs. Global Healthcare Income | Dynamic Global vs. CI Global Alpha | Dynamic Global vs. CI Global Alpha | Dynamic Global vs. CDSPI Global Growth |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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