Correlation Between Harvest Clean and CI Galaxy
Can any of the company-specific risk be diversified away by investing in both Harvest Clean and CI Galaxy 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 Harvest Clean and CI Galaxy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Clean Energy and CI Galaxy Blockchain, you can compare the effects of market volatilities on Harvest Clean and CI Galaxy 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 Harvest Clean with a short position of CI Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Clean and CI Galaxy.
Diversification Opportunities for Harvest Clean and CI Galaxy
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harvest and CBCX is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Clean Energy and CI Galaxy Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Galaxy Blockchain and Harvest Clean 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 Harvest Clean Energy are associated (or correlated) with CI Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Galaxy Blockchain has no effect on the direction of Harvest Clean i.e., Harvest Clean and CI Galaxy go up and down completely randomly.
Pair Corralation between Harvest Clean and CI Galaxy
Assuming the 90 days trading horizon Harvest Clean Energy is expected to under-perform the CI Galaxy. But the etf apears to be less risky and, when comparing its historical volatility, Harvest Clean Energy is 3.66 times less risky than CI Galaxy. The etf trades about -0.06 of its potential returns per unit of risk. The CI Galaxy Blockchain is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 885.00 in CI Galaxy Blockchain on August 28, 2024 and sell it today you would earn a total of 3,005 from holding CI Galaxy Blockchain or generate 339.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.97% |
| Values | Daily Returns |
Harvest Clean Energy vs. CI Galaxy Blockchain
Performance |
| Timeline |
| Harvest Clean Energy |
| CI Galaxy Blockchain |
Harvest Clean and CI Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Clean and CI Galaxy
The main advantage of trading using opposite Harvest Clean and CI Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Clean position performs unexpectedly, CI Galaxy 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 Galaxy will offset losses from the drop in CI Galaxy's long position.| Harvest Clean vs. BMO Aggregate Bond | Harvest Clean vs. iShares Canadian HYBrid | Harvest Clean vs. Brompton European Dividend | Harvest Clean vs. Solar Alliance Energy |
| CI Galaxy vs. NBI High Yield | CI Galaxy vs. NBI Unconstrained Fixed | CI Galaxy vs. Mackenzie Developed ex North | CI Galaxy vs. BMO Short Term 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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