Correlation Between CI Global and CI Marret
Can any of the company-specific risk be diversified away by investing in both CI Global and CI Marret 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 Global and CI Marret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Financial and CI Marret Alternative, you can compare the effects of market volatilities on CI Global and CI Marret 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 Global with a short position of CI Marret. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and CI Marret.
Diversification Opportunities for CI Global and CI Marret
Very good diversification
The 3 months correlation between FSF and CMAR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Financial and CI Marret Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Marret Alternative and CI Global 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 Global Financial are associated (or correlated) with CI Marret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Marret Alternative has no effect on the direction of CI Global i.e., CI Global and CI Marret go up and down completely randomly.
Pair Corralation between CI Global and CI Marret
Assuming the 90 days trading horizon CI Global Financial is expected to generate 2.74 times more return on investment than CI Marret. However, CI Global is 2.74 times more volatile than CI Marret Alternative. It trades about 0.31 of its potential returns per unit of risk. CI Marret Alternative is currently generating about 0.02 per unit of risk. If you would invest 2,895 in CI Global Financial on August 28, 2024 and sell it today you would earn a total of 158.00 from holding CI Global Financial or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CI Global Financial vs. CI Marret Alternative
Performance |
| Timeline |
| CI Global Financial |
| CI Marret Alternative |
CI Global and CI Marret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and CI Marret
The main advantage of trading using opposite CI Global and CI Marret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, CI Marret 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 Marret will offset losses from the drop in CI Marret's long position.| CI Global vs. Brompton Global Dividend | CI Global vs. Tech Leaders Income | CI Global vs. Global Healthcare Income | CI Global vs. Brompton European Dividend |
| CI Marret vs. Global Atomic Corp | CI Marret vs. enCore Energy Corp | CI Marret vs. Fission Uranium Corp | CI Marret vs. NexGen Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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