Correlation Between European Residential and CI Global
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By analyzing existing cross correlation between European Residential Real and CI Global Resource, you can compare the effects of market volatilities on European Residential 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 European Residential with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Residential and CI Global.
Diversification Opportunities for European Residential and CI Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between European and 0P000070I2 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding European Residential Real 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 European Residential 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 European Residential Real 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 European Residential i.e., European Residential and CI Global go up and down completely randomly.
Pair Corralation between European Residential and CI Global
Assuming the 90 days trading horizon European Residential Real is expected to generate 1.27 times more return on investment than CI Global. However, European Residential is 1.27 times more volatile than CI Global Resource. It trades about 0.26 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 348.00 in European Residential Real on September 12, 2024 and sell it today you would earn a total of 24.00 from holding European Residential Real or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
European Residential Real vs. CI Global Resource
Performance |
| Timeline |
| European Residential Real |
| CI Global Resource |
European Residential and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Residential and CI Global
The main advantage of trading using opposite European Residential and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Residential 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.| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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