Correlation Between Guardian and CIBC Global
Can any of the company-specific risk be diversified away by investing in both Guardian and CIBC 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 and CIBC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian i3 Global and CIBC Global Growth, you can compare the effects of market volatilities on Guardian and CIBC 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 with a short position of CIBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian and CIBC Global.
Diversification Opportunities for Guardian and CIBC Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guardian and CIBC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guardian i3 Global and CIBC Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Global Growth and Guardian 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 i3 Global are associated (or correlated) with CIBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Global Growth has no effect on the direction of Guardian i.e., Guardian and CIBC Global go up and down completely randomly.
Pair Corralation between Guardian and CIBC Global
Assuming the 90 days trading horizon Guardian i3 Global is expected to generate 0.99 times more return on investment than CIBC Global. However, Guardian i3 Global is 1.01 times less risky than CIBC Global. It trades about 0.2 of its potential returns per unit of risk. CIBC Global Growth is currently generating about 0.19 per unit of risk. If you would invest 2,975 in Guardian i3 Global on September 13, 2024 and sell it today you would earn a total of 106.00 from holding Guardian i3 Global or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian i3 Global vs. CIBC Global Growth
Performance |
| Timeline |
| Guardian i3 Global |
| CIBC Global Growth |
Guardian and CIBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian and CIBC Global
The main advantage of trading using opposite Guardian and CIBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian position performs unexpectedly, CIBC 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 CIBC Global will offset losses from the drop in CIBC Global's long position.| Guardian vs. Guardian i3 Quality | Guardian vs. Guardian Directed Premium | Guardian vs. Guardian Directed Equity | Guardian vs. CI ONE Global |
| CIBC Global vs. Guardian i3 Global | CIBC Global vs. CI Global Real | CIBC Global vs. CI Enhanced Short | CIBC Global vs. BMO Aggregate Bond |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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