Correlation Between Mackenzie Global and CI Global
Can any of the company-specific risk be diversified away by investing in both Mackenzie Global and CI Global 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 Global and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Global Infrastructure and CI Global REIT, you can compare the effects of market volatilities on Mackenzie Global and CI Global 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 Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Global and CI Global.
Diversification Opportunities for Mackenzie Global and CI Global
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mackenzie and CGRE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Global Infrastructur and CI Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global REIT and Mackenzie Global 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 Global Infrastructure are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global REIT has no effect on the direction of Mackenzie Global i.e., Mackenzie Global and CI Global go up and down completely randomly.
Pair Corralation between Mackenzie Global and CI Global
Assuming the 90 days trading horizon Mackenzie Global Infrastructure is expected to generate 1.36 times more return on investment than CI Global. However, Mackenzie Global is 1.36 times more volatile than CI Global REIT. It trades about 0.24 of its potential returns per unit of risk. CI Global REIT is currently generating about 0.05 per unit of risk. If you would invest 13,889 in Mackenzie Global Infrastructure on September 1, 2024 and sell it today you would earn a total of 623.00 from holding Mackenzie Global Infrastructure or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Global Infrastructur vs. CI Global REIT
Performance |
| Timeline |
| Mackenzie Global Inf |
| CI Global REIT |
Mackenzie Global and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Global and CI Global
The main advantage of trading using opposite Mackenzie Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Global position performs unexpectedly, CI Global 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 Global will offset losses from the drop in CI Global's long position.The idea behind Mackenzie Global Infrastructure and CI Global REIT 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.| CI Global vs. Global X Equal | CI Global vs. Global X Canadian | CI Global vs. Global X Intl | CI Global vs. Global X Canadian |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |