Correlation Between Dynamic Global and CI Global
Can any of the company-specific risk be diversified away by investing in both Dynamic Global and CI 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 Dynamic Global and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynamic Global Fixed and CI Global Unconstrained, you can compare the effects of market volatilities on Dynamic Global 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 Dynamic Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Global and CI Global.
Diversification Opportunities for Dynamic Global and CI Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dynamic and CUBD is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Global Fixed and CI Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Unconstrained and Dynamic 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 Dynamic Global Fixed 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 Unconstrained has no effect on the direction of Dynamic Global i.e., Dynamic Global and CI Global go up and down completely randomly.
Pair Corralation between Dynamic Global and CI Global
Assuming the 90 days trading horizon Dynamic Global is expected to generate 1.49 times less return on investment than CI Global. In addition to that, Dynamic Global is 1.0 times more volatile than CI Global Unconstrained. It trades about 0.06 of its total potential returns per unit of risk. CI Global Unconstrained is currently generating about 0.09 per unit of volatility. 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 |
Dynamic Global Fixed vs. CI Global Unconstrained
Performance |
| Timeline |
| Dynamic Global Fixed |
| CI Global Unconstrained |
Dynamic Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynamic Global and CI Global
The main advantage of trading using opposite Dynamic Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Global 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.| Dynamic Global vs. Global Healthcare Income | Dynamic Global vs. CI Global Alpha | Dynamic Global vs. CI Global Alpha | Dynamic Global vs. CDSPI Global Growth |
| CI Global vs. Global Healthcare Income | CI Global vs. CI Global Alpha | CI Global vs. CI Global Alpha | CI 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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