Correlation Between Harvest Healthcare and CI Global
Can any of the company-specific risk be diversified away by investing in both Harvest Healthcare 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 Healthcare 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 Healthcare Leaders and CI Global Climate, you can compare the effects of market volatilities on Harvest Healthcare 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 Healthcare with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Healthcare and CI Global.
Diversification Opportunities for Harvest Healthcare and CI Global
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harvest and CLML is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Healthcare Leaders and CI Global Climate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Climate and Harvest Healthcare 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 Healthcare Leaders 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 Climate has no effect on the direction of Harvest Healthcare i.e., Harvest Healthcare and CI Global go up and down completely randomly.
Pair Corralation between Harvest Healthcare and CI Global
Assuming the 90 days trading horizon Harvest Healthcare is expected to generate 2.7 times less return on investment than CI Global. But when comparing it to its historical volatility, Harvest Healthcare Leaders is 1.76 times less risky than CI Global. It trades about 0.1 of its potential returns per unit of risk. CI Global Climate is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,921 in CI Global Climate on September 1, 2024 and sell it today you would earn a total of 1,568 from holding CI Global Climate or generate 81.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Healthcare Leaders vs. CI Global Climate
Performance |
| Timeline |
| Harvest Healthcare |
| CI Global Climate |
Harvest Healthcare and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Healthcare and CI Global
The main advantage of trading using opposite Harvest Healthcare and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Healthcare 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 Healthcare vs. Harvest Premium Yield | Harvest Healthcare vs. Harvest Balanced Income | Harvest Healthcare vs. Harvest Energy Leaders | Harvest Healthcare vs. Harvest Eli Lilly |
| CI Global vs. NBI High Yield | CI Global vs. NBI Unconstrained Fixed | CI Global vs. Mackenzie Developed ex North | CI Global 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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