Correlation Between Mackenzie Unconstrained and CI Investment
Can any of the company-specific risk be diversified away by investing in both Mackenzie Unconstrained and CI Investment 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 Unconstrained and CI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Unconstrained Bond and CI Investment Grade, you can compare the effects of market volatilities on Mackenzie Unconstrained and CI Investment 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 Unconstrained with a short position of CI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Unconstrained and CI Investment.
Diversification Opportunities for Mackenzie Unconstrained and CI Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mackenzie and FIG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Unconstrained Bond and CI Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Investment Grade and Mackenzie Unconstrained 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 Unconstrained Bond are associated (or correlated) with CI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Investment Grade has no effect on the direction of Mackenzie Unconstrained i.e., Mackenzie Unconstrained and CI Investment go up and down completely randomly.
Pair Corralation between Mackenzie Unconstrained and CI Investment
Assuming the 90 days trading horizon Mackenzie Unconstrained is expected to generate 1.75 times less return on investment than CI Investment. But when comparing it to its historical volatility, Mackenzie Unconstrained Bond is 1.29 times less risky than CI Investment. It trades about 0.08 of its potential returns per unit of risk. CI Investment Grade is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 935.00 in CI Investment Grade on August 28, 2024 and sell it today you would earn a total of 8.00 from holding CI Investment Grade or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Unconstrained Bond vs. CI Investment Grade
Performance |
| Timeline |
| Mackenzie Unconstrained |
| CI Investment Grade |
Mackenzie Unconstrained and CI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Unconstrained and CI Investment
The main advantage of trading using opposite Mackenzie Unconstrained and CI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Unconstrained position performs unexpectedly, CI Investment 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 Investment will offset losses from the drop in CI Investment's long position.| Mackenzie Unconstrained vs. Purpose Total Return | Mackenzie Unconstrained vs. Purpose Multi Asset Income | Mackenzie Unconstrained vs. Purpose Strategic Yield | Mackenzie Unconstrained vs. BMO Aggregate Bond |
| CI Investment vs. Mackenzie High Yield | CI Investment vs. Mackenzie Core Plus | CI Investment vs. Mackenzie Canadian Aggregate | CI Investment vs. Mackenzie Core Plus |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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