Correlation Between CI Canada and Evolve Global
Can any of the company-specific risk be diversified away by investing in both CI Canada and Evolve 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 CI Canada and Evolve Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canada Lifeco and Evolve Global Healthcare, you can compare the effects of market volatilities on CI Canada and Evolve 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 CI Canada with a short position of Evolve Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canada and Evolve Global.
Diversification Opportunities for CI Canada and Evolve Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FLI and Evolve is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CI Canada Lifeco and Evolve Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Healthcare and CI Canada 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 Canada Lifeco are associated (or correlated) with Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Healthcare has no effect on the direction of CI Canada i.e., CI Canada and Evolve Global go up and down completely randomly.
Pair Corralation between CI Canada and Evolve Global
Assuming the 90 days trading horizon CI Canada Lifeco is expected to generate 1.07 times more return on investment than Evolve Global. However, CI Canada is 1.07 times more volatile than Evolve Global Healthcare. It trades about -0.09 of its potential returns per unit of risk. Evolve Global Healthcare is currently generating about -0.18 per unit of risk. If you would invest 1,115 in CI Canada Lifeco on January 13, 2025 and sell it today you would lose (64.00) from holding CI Canada Lifeco or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Canada Lifeco vs. Evolve Global Healthcare
Performance |
| Timeline |
| CI Canada Lifeco |
| Evolve Global Healthcare |
CI Canada and Evolve Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canada and Evolve Global
The main advantage of trading using opposite CI Canada and Evolve Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canada position performs unexpectedly, Evolve 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 Evolve Global will offset losses from the drop in Evolve Global's long position.| CI Canada vs. First Asset Energy | CI Canada vs. CI Gold Giants | CI Canada vs. Harvest Equal Weight | CI Canada vs. First Asset Tech |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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