Correlation Between CI Investment and Mackenzie Investment
Can any of the company-specific risk be diversified away by investing in both CI Investment 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 Investment 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 Investment Grade and Mackenzie Investment Grade, you can compare the effects of market volatilities on CI Investment 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 Investment with a short position of Mackenzie Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Investment and Mackenzie Investment.
Diversification Opportunities for CI Investment and Mackenzie Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIG and Mackenzie is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CI Investment Grade 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 Investment 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 Investment Grade 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 Investment i.e., CI Investment and Mackenzie Investment go up and down completely randomly.
Pair Corralation between CI Investment and Mackenzie Investment
Assuming the 90 days trading horizon CI Investment Grade is expected to under-perform the Mackenzie Investment. But the etf apears to be less risky and, when comparing its historical volatility, CI Investment Grade is 1.12 times less risky than Mackenzie Investment. The etf trades about -0.04 of its potential returns per unit of risk. The Mackenzie Investment Grade is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 8,615 in Mackenzie Investment Grade on August 25, 2024 and sell it today you would lose (27.00) from holding Mackenzie Investment Grade or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Investment Grade vs. Mackenzie Investment Grade
Performance |
| Timeline |
| CI Investment Grade |
| Mackenzie Investment |
CI Investment and Mackenzie Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Investment and Mackenzie Investment
The main advantage of trading using opposite CI Investment and Mackenzie Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Investment 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 Investment vs. CI Enhanced Short | CI Investment vs. Global X Active | CI Investment vs. Mackenzie Unconstrained Bond | CI Investment vs. CI Enhanced Government |
| Mackenzie Investment vs. Mackenzie High Yield | Mackenzie Investment vs. Mackenzie Core Plus | Mackenzie Investment vs. Mackenzie Canadian Aggregate | Mackenzie Investment vs. Mackenzie Core Plus |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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