Correlation Between Dow Jones and CI Global
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By analyzing existing cross correlation between Dow Jones Industrial and CI Global Resource, you can compare the effects of market volatilities on Dow Jones and CI 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 Dow Jones with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CI Global.
Diversification Opportunities for Dow Jones and CI Global
Poor diversification
The 3 months correlation between Dow and 0P000070I2 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Resource has no effect on the direction of Dow Jones i.e., Dow Jones and CI Global go up and down completely randomly.
Pair Corralation between Dow Jones and CI Global
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.61 times more return on investment than CI Global. However, Dow Jones Industrial is 1.64 times less risky than CI Global. It trades about -0.01 of its potential returns per unit of risk. CI Global Resource is currently generating about -0.01 per unit of risk. If you would invest 4,429,313 in Dow Jones Industrial on September 12, 2024 and sell it today you would lose (4,530) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. CI Global Resource
Performance |
| Timeline |
Dow Jones and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CI Global Resource
Pair trading matchups for CI Global
Pair Trading with Dow Jones and CI Global
The main advantage of trading using opposite Dow Jones and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CI 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 CI Global will offset losses from the drop in CI Global's long position.| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
| CI Global vs. BMO Aggregate Bond | CI Global vs. iShares Canadian HYBrid | CI Global vs. Brompton European Dividend | CI Global vs. Solar Alliance Energy |
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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