Correlation Between BetaPro SP and CI Canadian
Can any of the company-specific risk be diversified away by investing in both BetaPro SP and CI Canadian 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 BetaPro SP and CI Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SP 500 and CI Canadian Banks, you can compare the effects of market volatilities on BetaPro SP and CI Canadian 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 BetaPro SP with a short position of CI Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and CI Canadian.
Diversification Opportunities for BetaPro SP and CI Canadian
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and CIC is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 and CI Canadian Banks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Canadian Banks and BetaPro SP 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 BetaPro SP 500 are associated (or correlated) with CI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Canadian Banks has no effect on the direction of BetaPro SP i.e., BetaPro SP and CI Canadian go up and down completely randomly.
Pair Corralation between BetaPro SP and CI Canadian
Assuming the 90 days trading horizon BetaPro SP 500 is expected to under-perform the CI Canadian. In addition to that, BetaPro SP is 1.07 times more volatile than CI Canadian Banks. It trades about -0.08 of its total potential returns per unit of risk. CI Canadian Banks is currently generating about 0.07 per unit of volatility. If you would invest 983.00 in CI Canadian Banks on September 3, 2024 and sell it today you would earn a total of 245.00 from holding CI Canadian Banks or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SP 500 vs. CI Canadian Banks
Performance |
| Timeline |
| BetaPro SP 500 |
| CI Canadian Banks |
BetaPro SP and CI Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SP and CI Canadian
The main advantage of trading using opposite BetaPro SP and CI Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP position performs unexpectedly, CI Canadian 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 Canadian will offset losses from the drop in CI Canadian's long position.| BetaPro SP vs. BetaPro SP TSX | BetaPro SP vs. BetaPro SP TSX | BetaPro SP vs. BetaPro SPTSX Capped | BetaPro SP vs. BetaPro SPTSX 60 |
| CI Canadian vs. Celestica | CI Canadian vs. Descartes Systems Group | CI Canadian vs. Hamilton MidSmall Cap Financials | CI Canadian vs. CI Canada Lifeco |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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