Correlation Between Guardian Directed and CI Global
Can any of the company-specific risk be diversified away by investing in both Guardian Directed 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 Guardian Directed and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Directed Premium and CI Global Asset, you can compare the effects of market volatilities on Guardian Directed 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 Guardian Directed with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Directed and CI Global.
Diversification Opportunities for Guardian Directed and CI Global
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guardian and CGAA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Directed Premium and CI Global Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Asset and Guardian Directed 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 Guardian Directed Premium 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 Asset has no effect on the direction of Guardian Directed i.e., Guardian Directed and CI Global go up and down completely randomly.
Pair Corralation between Guardian Directed and CI Global
Assuming the 90 days trading horizon Guardian Directed is expected to generate 1.04 times less return on investment than CI Global. In addition to that, Guardian Directed is 1.1 times more volatile than CI Global Asset. It trades about 0.07 of its total potential returns per unit of risk. CI Global Asset is currently generating about 0.09 per unit of volatility. If you would invest 2,268 in CI Global Asset on November 27, 2024 and sell it today you would earn a total of 593.00 from holding CI Global Asset or generate 26.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Directed Premium vs. CI Global Asset
Performance |
| Timeline |
| Guardian Directed Premium |
| CI Global Asset |
Guardian Directed and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Directed and CI Global
The main advantage of trading using opposite Guardian Directed and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Directed 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.| Guardian Directed vs. Guardian Directed Equity | Guardian Directed vs. Guardian Canadian Focused | Guardian Directed vs. Guardian Canadian Sector | Guardian Directed vs. Guardian Ultra Short Canadian |
| CI Global vs. Vanguard Balanced Portfolio | CI Global vs. Vanguard Conservative ETF | CI Global vs. iShares Core Balanced | CI Global vs. BMO Monthly Income |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |