Correlation Between Guardian and CI Global
Can any of the company-specific risk be diversified away by investing in both Guardian 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 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 i3 Global and CI Global Real, you can compare the effects of market volatilities on Guardian 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 with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian and CI Global.
Diversification Opportunities for Guardian and CI Global
Significant diversification
The 3 months correlation between Guardian and CGRA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guardian i3 Global and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real 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 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 Real has no effect on the direction of Guardian i.e., Guardian and CI Global go up and down completely randomly.
Pair Corralation between Guardian and CI Global
Assuming the 90 days trading horizon Guardian i3 Global is expected to under-perform the CI Global. In addition to that, Guardian is 2.8 times more volatile than CI Global Real. It trades about -0.16 of its total potential returns per unit of risk. CI Global Real is currently generating about -0.19 per unit of volatility. If you would invest 2,278 in CI Global Real on November 27, 2024 and sell it today you would lose (37.00) from holding CI Global Real or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guardian i3 Global vs. CI Global Real
Performance |
| Timeline |
| Guardian i3 Global |
| CI Global Real |
Guardian and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian and CI Global
The main advantage of trading using opposite Guardian and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian 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 vs. Guardian i3 Quality | Guardian vs. Guardian Directed Premium | Guardian vs. Guardian Directed Equity | Guardian vs. CI ONE Global |
| CI Global vs. CI Global REIT | CI Global vs. CI Global Infrastructure | CI Global vs. CI Global Asset | CI Global vs. CI Marret Alternative |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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