Correlation Between CI Enhanced and CI Global
Can any of the company-specific risk be diversified away by investing in both CI Enhanced and CI 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 Enhanced and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Enhanced Short and CI Global Real, you can compare the effects of market volatilities on CI Enhanced 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 CI Enhanced with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and CI Global.
Diversification Opportunities for CI Enhanced and CI Global
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between FSB and CGRA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Short and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real 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 Short 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 Real has no effect on the direction of CI Enhanced i.e., CI Enhanced and CI Global go up and down completely randomly.
Pair Corralation between CI Enhanced and CI Global
Assuming the 90 days trading horizon CI Enhanced Short is expected to generate 0.37 times more return on investment than CI Global. However, CI Enhanced Short is 2.67 times less risky than CI Global. It trades about 0.0 of its potential returns per unit of risk. CI Global Real is currently generating about -0.19 per unit of risk. If you would invest 967.00 in CI Enhanced Short on November 27, 2024 and sell it today you would earn a total of 0.00 from holding CI Enhanced Short or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Enhanced Short vs. CI Global Real
Performance |
| Timeline |
| CI Enhanced Short |
| CI Global Real |
CI Enhanced and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Enhanced and CI Global
The main advantage of trading using opposite CI Enhanced and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Enhanced 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.| CI Enhanced vs. CI Investment Grade | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. CI Preferred Share | CI Enhanced vs. CI Short Term |
| CI Global vs. CI Global REIT | CI Global vs. CI Global Infrastructure | CI Global vs. CI Global Asset | CI Global vs. CI Marret Alternative |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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