Correlation Between Blockchain Technologies and CI Short
Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies and CI Short 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 Blockchain Technologies and CI Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Technologies ETF and CI Short Term, you can compare the effects of market volatilities on Blockchain Technologies and CI Short 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 Blockchain Technologies with a short position of CI Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and CI Short.
Diversification Opportunities for Blockchain Technologies and CI Short
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blockchain and FGB is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and CI Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Short Term and Blockchain Technologies 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 Blockchain Technologies ETF are associated (or correlated) with CI Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Short Term has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and CI Short go up and down completely randomly.
Pair Corralation between Blockchain Technologies and CI Short
Assuming the 90 days trading horizon Blockchain Technologies ETF is expected to generate 27.13 times more return on investment than CI Short. However, Blockchain Technologies is 27.13 times more volatile than CI Short Term. It trades about 0.14 of its potential returns per unit of risk. CI Short Term is currently generating about -0.06 per unit of risk. If you would invest 1,765 in Blockchain Technologies ETF on August 29, 2024 and sell it today you would earn a total of 238.00 from holding Blockchain Technologies ETF or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Technologies ETF vs. CI Short Term
Performance |
| Timeline |
| Blockchain Technologies |
| CI Short Term |
Blockchain Technologies and CI Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Technologies and CI Short
The main advantage of trading using opposite Blockchain Technologies and CI Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies position performs unexpectedly, CI Short 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 Short will offset losses from the drop in CI Short's long position.| Blockchain Technologies vs. Global X Big | Blockchain Technologies vs. Evolve Automobile Innovation | Blockchain Technologies vs. Evolve E Gaming Index | Blockchain Technologies vs. Evolve Cyber Security |
| CI Short vs. CI Enhanced Short | CI Short vs. CI Preferred Share | CI Short vs. CI Global Financial | CI Short vs. CI Investment Grade |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |