Correlation Between Guardian Directed and CI ONE
Can any of the company-specific risk be diversified away by investing in both Guardian Directed and CI ONE 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 ONE 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 ONE Global, you can compare the effects of market volatilities on Guardian Directed and CI ONE 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 ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Directed and CI ONE.
Diversification Opportunities for Guardian Directed and CI ONE
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guardian and ONEQ is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Directed Premium and CI ONE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE Global 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 ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE Global has no effect on the direction of Guardian Directed i.e., Guardian Directed and CI ONE go up and down completely randomly.
Pair Corralation between Guardian Directed and CI ONE
Assuming the 90 days trading horizon Guardian Directed is expected to generate 1.34 times less return on investment than CI ONE. But when comparing it to its historical volatility, Guardian Directed Premium is 1.07 times less risky than CI ONE. It trades about 0.09 of its potential returns per unit of risk. CI ONE Global is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,107 in CI ONE Global on September 3, 2024 and sell it today you would earn a total of 1,306 from holding CI ONE Global or generate 42.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian Directed Premium vs. CI ONE Global
Performance |
| Timeline |
| Guardian Directed Premium |
| CI ONE Global |
Guardian Directed and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Directed and CI ONE
The main advantage of trading using opposite Guardian Directed and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Directed position performs unexpectedly, CI ONE 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 ONE will offset losses from the drop in CI ONE'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 ONE vs. CI MidCap Dividend | CI ONE vs. CI Yield Enhanced | CI ONE vs. CI Canadian Short Term | CI ONE vs. CI ONE North |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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