Correlation Between IA Clarington and Global Iman
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By analyzing existing cross correlation between IA Clarington Strategic and Global Iman Fund, you can compare the effects of market volatilities on IA Clarington and Global Iman 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 IA Clarington with a short position of Global Iman. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Clarington and Global Iman.
Diversification Opportunities for IA Clarington and Global Iman
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISCB and Global is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding IA Clarington Strategic and Global Iman Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Iman Fund and IA Clarington 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 IA Clarington Strategic are associated (or correlated) with Global Iman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Iman Fund has no effect on the direction of IA Clarington i.e., IA Clarington and Global Iman go up and down completely randomly.
Pair Corralation between IA Clarington and Global Iman
Assuming the 90 days trading horizon IA Clarington is expected to generate 1.65 times less return on investment than Global Iman. But when comparing it to its historical volatility, IA Clarington Strategic is 2.5 times less risky than Global Iman. It trades about 0.15 of its potential returns per unit of risk. Global Iman Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,231 in Global Iman Fund on September 2, 2024 and sell it today you would earn a total of 1,205 from holding Global Iman Fund or generate 37.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.44% |
| Values | Daily Returns |
IA Clarington Strategic vs. Global Iman Fund
Performance |
| Timeline |
| IA Clarington Strategic |
| Global Iman Fund |
IA Clarington and Global Iman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Clarington and Global Iman
The main advantage of trading using opposite IA Clarington and Global Iman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Clarington position performs unexpectedly, Global Iman 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 Global Iman will offset losses from the drop in Global Iman's long position.| IA Clarington vs. Fidelity Tactical High | IA Clarington vs. Global Healthcare Income | IA Clarington vs. CI Global Alpha | IA Clarington vs. CI Global Alpha |
| Global Iman vs. Dynamic Global Fixed | Global Iman vs. Rbc North American | Global Iman vs. Picton Mahoney Fortified | Global Iman vs. Desjardins Sustainable Maximum |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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