Correlation Between BetaPro SP and CI MidCap
Can any of the company-specific risk be diversified away by investing in both BetaPro SP and CI MidCap 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 MidCap 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 MidCap Dividend, you can compare the effects of market volatilities on BetaPro SP and CI MidCap 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 MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and CI MidCap.
Diversification Opportunities for BetaPro SP and CI MidCap
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BetaPro and UMI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of BetaPro SP i.e., BetaPro SP and CI MidCap go up and down completely randomly.
Pair Corralation between BetaPro SP and CI MidCap
Assuming the 90 days trading horizon BetaPro SP 500 is expected to generate 0.72 times more return on investment than CI MidCap. However, BetaPro SP 500 is 1.38 times less risky than CI MidCap. It trades about 0.03 of its potential returns per unit of risk. CI MidCap Dividend is currently generating about -0.16 per unit of risk. If you would invest 1,084 in BetaPro SP 500 on November 28, 2024 and sell it today you would earn a total of 4.00 from holding BetaPro SP 500 or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SP 500 vs. CI MidCap Dividend
Performance |
| Timeline |
| BetaPro SP 500 |
| CI MidCap Dividend |
BetaPro SP and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SP and CI MidCap
The main advantage of trading using opposite BetaPro SP and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP position performs unexpectedly, CI MidCap 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 MidCap will offset losses from the drop in CI MidCap's long position.| BetaPro SP vs. BetaPro SPTSX 60 | BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro Gold Bullion |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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