Correlation Between NeuPath Health and CI Financial
Can any of the company-specific risk be diversified away by investing in both NeuPath Health 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 NeuPath Health and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeuPath Health and CI Financial Corp, you can compare the effects of market volatilities on NeuPath Health 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 NeuPath Health with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeuPath Health and CI Financial.
Diversification Opportunities for NeuPath Health and CI Financial
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NeuPath and CIX is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NeuPath Health 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 NeuPath Health 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 NeuPath Health 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 NeuPath Health i.e., NeuPath Health and CI Financial go up and down completely randomly.
Pair Corralation between NeuPath Health and CI Financial
Assuming the 90 days trading horizon NeuPath Health is expected to under-perform the CI Financial. In addition to that, NeuPath Health is 2.42 times more volatile than CI Financial Corp. It trades about -0.06 of its total potential returns per unit of risk. CI Financial Corp is currently generating about 0.31 per unit of volatility. If you would invest 2,185 in CI Financial Corp on August 26, 2024 and sell it today you would earn a total of 216.00 from holding CI Financial Corp or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeuPath Health vs. CI Financial Corp
Performance |
| Timeline |
| NeuPath Health |
| CI Financial Corp |
NeuPath Health and CI Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeuPath Health and CI Financial
The main advantage of trading using opposite NeuPath Health and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeuPath Health 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.| NeuPath Health vs. Royal Bank of | NeuPath Health vs. Broadcom | NeuPath Health vs. T2 Metals Corp | NeuPath Health vs. Nicola Mining |
| CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Canadian Western Bank | CI Financial vs. Great West Lifeco |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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