Correlation Between CI Canadian and IShares Global
Can any of the company-specific risk be diversified away by investing in both CI Canadian and IShares 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 CI Canadian and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canadian REIT and iShares Global Real, you can compare the effects of market volatilities on CI Canadian and IShares 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 CI Canadian with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canadian and IShares Global.
Diversification Opportunities for CI Canadian and IShares Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RIT and IShares is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CI Canadian REIT and iShares Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Real and CI Canadian 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 CI Canadian REIT are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Real has no effect on the direction of CI Canadian i.e., CI Canadian and IShares Global go up and down completely randomly.
Pair Corralation between CI Canadian and IShares Global
Assuming the 90 days trading horizon CI Canadian REIT is expected to under-perform the IShares Global. But the etf apears to be less risky and, when comparing its historical volatility, CI Canadian REIT is 1.05 times less risky than IShares Global. The etf trades about -0.19 of its potential returns per unit of risk. The iShares Global Real is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,195 in iShares Global Real on August 29, 2024 and sell it today you would earn a total of 24.00 from holding iShares Global Real or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Canadian REIT vs. iShares Global Real
Performance |
| Timeline |
| CI Canadian REIT |
| iShares Global Real |
CI Canadian and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canadian and IShares Global
The main advantage of trading using opposite CI Canadian and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canadian position performs unexpectedly, IShares 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 IShares Global will offset losses from the drop in IShares Global's long position.| CI Canadian vs. iShares SPTSX Capped | CI Canadian vs. Vanguard FTSE Canadian | CI Canadian vs. BMO Equal Weight | CI Canadian vs. BMO Canadian Dividend |
| IShares Global vs. iShares Global Infrastructure | IShares Global vs. iShares Global Monthly | IShares Global vs. iShares 1 5 Year | IShares Global vs. iShares Equal Weight |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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