Correlation Between Global X and CI Enhanced
Can any of the company-specific risk be diversified away by investing in both Global X and CI Enhanced 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 Global X and CI Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SPTSX and CI Enhanced Short, you can compare the effects of market volatilities on Global X and CI Enhanced 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 Global X with a short position of CI Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and CI Enhanced.
Diversification Opportunities for Global X and CI Enhanced
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and FSB is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Global X SPTSX and CI Enhanced Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Enhanced Short and Global X 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 Global X SPTSX are associated (or correlated) with CI Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Enhanced Short has no effect on the direction of Global X i.e., Global X and CI Enhanced go up and down completely randomly.
Pair Corralation between Global X and CI Enhanced
Assuming the 90 days trading horizon Global X SPTSX is expected to generate 8.74 times more return on investment than CI Enhanced. However, Global X is 8.74 times more volatile than CI Enhanced Short. It trades about 0.04 of its potential returns per unit of risk. CI Enhanced Short is currently generating about 0.16 per unit of risk. If you would invest 2,987 in Global X SPTSX on September 3, 2024 and sell it today you would earn a total of 746.00 from holding Global X SPTSX or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X SPTSX vs. CI Enhanced Short
Performance |
| Timeline |
| Global X SPTSX |
| CI Enhanced Short |
Global X and CI Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and CI Enhanced
The main advantage of trading using opposite Global X and CI Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, CI Enhanced 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 Enhanced will offset losses from the drop in CI Enhanced's long position.| Global X vs. CI Gold Giants | Global X vs. First Asset Tech | Global X vs. CI Canada Lifeco | Global X vs. Harvest Healthcare Leaders |
| CI Enhanced vs. CI Investment Grade | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. CI Preferred Share | CI Enhanced vs. CI Short Term |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets |