Correlation Between CI Enhanced and Mackenzie Investment
Can any of the company-specific risk be diversified away by investing in both CI Enhanced and Mackenzie Investment 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 Enhanced and Mackenzie Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Enhanced Government and Mackenzie Investment Grade, you can compare the effects of market volatilities on CI Enhanced and Mackenzie Investment 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 Enhanced with a short position of Mackenzie Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and Mackenzie Investment.
Diversification Opportunities for CI Enhanced and Mackenzie Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FGO and Mackenzie is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Government and Mackenzie Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Investment and CI Enhanced 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 Enhanced Government are associated (or correlated) with Mackenzie Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Investment has no effect on the direction of CI Enhanced i.e., CI Enhanced and Mackenzie Investment go up and down completely randomly.
Pair Corralation between CI Enhanced and Mackenzie Investment
Assuming the 90 days trading horizon CI Enhanced is expected to generate 1.19 times less return on investment than Mackenzie Investment. In addition to that, CI Enhanced is 1.03 times more volatile than Mackenzie Investment Grade. It trades about 0.06 of its total potential returns per unit of risk. Mackenzie Investment Grade is currently generating about 0.08 per unit of volatility. If you would invest 7,827 in Mackenzie Investment Grade on September 12, 2024 and sell it today you would earn a total of 855.00 from holding Mackenzie Investment Grade or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Enhanced Government vs. Mackenzie Investment Grade
Performance |
| Timeline |
| CI Enhanced Government |
| Mackenzie Investment |
CI Enhanced and Mackenzie Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Enhanced and Mackenzie Investment
The main advantage of trading using opposite CI Enhanced and Mackenzie Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Enhanced position performs unexpectedly, Mackenzie Investment 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 Investment will offset losses from the drop in Mackenzie Investment's long position.| CI Enhanced vs. Franklin Global Aggregate | CI Enhanced vs. PIMCO Global Short | CI Enhanced vs. CIBC Core Plus | CI Enhanced vs. Mackenzie Core Plus |
| Mackenzie Investment vs. CI Enhanced Short | Mackenzie Investment vs. Global X Active | Mackenzie Investment vs. Mackenzie Unconstrained Bond | Mackenzie Investment vs. CI Enhanced Government |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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