Correlation Between Harvest Global and CI Global
Can any of the company-specific risk be diversified away by investing in both Harvest Global 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 Harvest Global and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Global REIT and CI Global REIT, you can compare the effects of market volatilities on Harvest Global 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 Harvest Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and CI Global.
Diversification Opportunities for Harvest Global and CI Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harvest and CGRE is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and CI Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global REIT and Harvest Global 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 Global REIT 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 REIT has no effect on the direction of Harvest Global i.e., Harvest Global and CI Global go up and down completely randomly.
Pair Corralation between Harvest Global and CI Global
Assuming the 90 days trading horizon Harvest Global REIT is expected to under-perform the CI Global. In addition to that, Harvest Global is 1.35 times more volatile than CI Global REIT. It trades about -0.18 of its total potential returns per unit of risk. CI Global REIT is currently generating about -0.24 per unit of volatility. If you would invest 2,271 in CI Global REIT on August 24, 2024 and sell it today you would lose (71.00) from holding CI Global REIT or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Global REIT vs. CI Global REIT
Performance |
| Timeline |
| Harvest Global REIT |
| CI Global REIT |
Harvest Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Global and CI Global
The main advantage of trading using opposite Harvest Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global 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.| Harvest Global vs. iShares SPTSX Capped | Harvest Global vs. iShares Canadian Select | Harvest Global vs. iShares SPTSX Capped | Harvest Global vs. BMO Equal Weight |
| CI Global vs. CI Global Real | CI Global vs. CI Global Infrastructure | CI Global vs. CI Canadian REIT | CI Global vs. Global X Equal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |