Correlation Between HPQ Silicon and CI Financial
Can any of the company-specific risk be diversified away by investing in both HPQ Silicon and CI Financial 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 HPQ Silicon and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HPQ Silicon Resources and CI Financial Corp, you can compare the effects of market volatilities on HPQ Silicon and CI Financial 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 HPQ Silicon with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HPQ Silicon and CI Financial.
Diversification Opportunities for HPQ Silicon and CI Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HPQ and CIX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HPQ Silicon Resources and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and HPQ Silicon 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 HPQ Silicon Resources are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of HPQ Silicon i.e., HPQ Silicon and CI Financial go up and down completely randomly.
Pair Corralation between HPQ Silicon and CI Financial
Assuming the 90 days horizon HPQ Silicon Resources is expected to under-perform the CI Financial. In addition to that, HPQ Silicon is 24.74 times more volatile than CI Financial Corp. It trades about -0.19 of its total potential returns per unit of risk. CI Financial Corp is currently generating about 0.02 per unit of volatility. If you would invest 3,119 in CI Financial Corp on December 9, 2024 and sell it today you would earn a total of 2.00 from holding CI Financial Corp or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HPQ Silicon Resources vs. CI Financial Corp
Performance |
| Timeline |
| HPQ Silicon Resources |
| CI Financial Corp |
HPQ Silicon and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HPQ Silicon and CI Financial
The main advantage of trading using opposite HPQ Silicon and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HPQ Silicon position performs unexpectedly, CI Financial 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 Financial will offset losses from the drop in CI Financial's long position.| HPQ Silicon vs. PyroGenesis Canada | HPQ Silicon vs. Solar Alliance Energy | HPQ Silicon vs. Braille Energy Systems |
| CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Great West Lifeco | CI Financial vs. Laurentian Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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