Correlation Between Mackenzie Core and CIBC Core
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core and CIBC Core 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 Mackenzie Core and CIBC Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Core Plus and CIBC Core Plus, you can compare the effects of market volatilities on Mackenzie Core and CIBC Core 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 Mackenzie Core with a short position of CIBC Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and CIBC Core.
Diversification Opportunities for Mackenzie Core and CIBC Core
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mackenzie and CIBC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and CIBC Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Core Plus and Mackenzie Core 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 Mackenzie Core Plus are associated (or correlated) with CIBC Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Core Plus has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and CIBC Core go up and down completely randomly.
Pair Corralation between Mackenzie Core and CIBC Core
Assuming the 90 days trading horizon Mackenzie Core is expected to generate 11.28 times less return on investment than CIBC Core. But when comparing it to its historical volatility, Mackenzie Core Plus is 12.52 times less risky than CIBC Core. It trades about 0.03 of its potential returns per unit of risk. CIBC Core Plus is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,624 in CIBC Core Plus on August 28, 2024 and sell it today you would earn a total of 161.00 from holding CIBC Core Plus or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mackenzie Core Plus vs. CIBC Core Plus
Performance |
| Timeline |
| Mackenzie Core Plus |
| CIBC Core Plus |
Mackenzie Core and CIBC Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and CIBC Core
The main advantage of trading using opposite Mackenzie Core and CIBC Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core position performs unexpectedly, CIBC Core 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 CIBC Core will offset losses from the drop in CIBC Core's long position.The idea behind Mackenzie Core Plus and CIBC Core Plus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CIBC Core vs. CIBC Core Fixed | CIBC Core vs. CIBC Canadian Equity | CIBC Core vs. CIBC Clean Energy | CIBC Core vs. CIBC Conservative Fixed |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |