Correlation Between CI Global and BMO Covered
Can any of the company-specific risk be diversified away by investing in both CI Global and BMO Covered 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 BMO Covered 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 BMO Covered Call, you can compare the effects of market volatilities on CI Global and BMO Covered 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 BMO Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and BMO Covered.
Diversification Opportunities for CI Global and BMO Covered
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FSF and BMO is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Financial and BMO Covered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Covered Call 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 BMO Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Covered Call has no effect on the direction of CI Global i.e., CI Global and BMO Covered go up and down completely randomly.
Pair Corralation between CI Global and BMO Covered
Assuming the 90 days trading horizon CI Global Financial is expected to generate 0.58 times more return on investment than BMO Covered. However, CI Global Financial is 1.72 times less risky than BMO Covered. It trades about 0.09 of its potential returns per unit of risk. BMO Covered Call is currently generating about 0.03 per unit of risk. If you would invest 2,115 in CI Global Financial on August 28, 2024 and sell it today you would earn a total of 938.00 from holding CI Global Financial or generate 44.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
CI Global Financial vs. BMO Covered Call
Performance |
| Timeline |
| CI Global Financial |
| BMO Covered Call |
CI Global and BMO Covered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and BMO Covered
The main advantage of trading using opposite CI Global and BMO Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, BMO Covered 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 BMO Covered will offset losses from the drop in BMO Covered'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 |
| BMO Covered vs. Brompton Global Dividend | BMO Covered vs. Tech Leaders Income | BMO Covered vs. Global Healthcare Income | BMO Covered vs. Brompton European Dividend |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |