Correlation Between CI Short and Mackenzie Canadian
Can any of the company-specific risk be diversified away by investing in both CI Short and Mackenzie Canadian 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 Short and Mackenzie Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Short Term and Mackenzie Canadian Aggregate, you can compare the effects of market volatilities on CI Short and Mackenzie Canadian 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 Short with a short position of Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Short and Mackenzie Canadian.
Diversification Opportunities for CI Short and Mackenzie Canadian
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FGB and Mackenzie is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CI Short Term and Mackenzie Canadian Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Canadian and CI Short 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 Short Term are associated (or correlated) with Mackenzie Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Canadian has no effect on the direction of CI Short i.e., CI Short and Mackenzie Canadian go up and down completely randomly.
Pair Corralation between CI Short and Mackenzie Canadian
Assuming the 90 days trading horizon CI Short Term is expected to under-perform the Mackenzie Canadian. But the etf apears to be less risky and, when comparing its historical volatility, CI Short Term is 2.68 times less risky than Mackenzie Canadian. The etf trades about -0.07 of its potential returns per unit of risk. The Mackenzie Canadian Aggregate is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 9,347 in Mackenzie Canadian Aggregate on September 1, 2024 and sell it today you would earn a total of 138.00 from holding Mackenzie Canadian Aggregate or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Short Term vs. Mackenzie Canadian Aggregate
Performance |
| Timeline |
| CI Short Term |
| Mackenzie Canadian |
CI Short and Mackenzie Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Short and Mackenzie Canadian
The main advantage of trading using opposite CI Short and Mackenzie Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Short position performs unexpectedly, Mackenzie Canadian 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 Mackenzie Canadian will offset losses from the drop in Mackenzie Canadian's long position.| CI Short vs. CI Enhanced Short | CI Short vs. CI Preferred Share | CI Short vs. CI Global Financial | CI Short vs. CI Investment Grade |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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