Correlation Between CI Canadian and Dynamic Active
Can any of the company-specific risk be diversified away by investing in both CI Canadian and Dynamic Active 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 Dynamic Active 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 Dynamic Active Global, you can compare the effects of market volatilities on CI Canadian and Dynamic Active 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 Dynamic Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canadian and Dynamic Active.
Diversification Opportunities for CI Canadian and Dynamic Active
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between RIT and Dynamic is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CI Canadian REIT and Dynamic Active Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynamic Active Global 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 Dynamic Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynamic Active Global has no effect on the direction of CI Canadian i.e., CI Canadian and Dynamic Active go up and down completely randomly.
Pair Corralation between CI Canadian and Dynamic Active
Assuming the 90 days trading horizon CI Canadian REIT is expected to generate 1.59 times more return on investment than Dynamic Active. However, CI Canadian is 1.59 times more volatile than Dynamic Active Global. It trades about 0.14 of its potential returns per unit of risk. Dynamic Active Global is currently generating about 0.03 per unit of risk. If you would invest 1,537 in CI Canadian REIT on November 28, 2024 and sell it today you would earn a total of 41.00 from holding CI Canadian REIT or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Canadian REIT vs. Dynamic Active Global
Performance |
| Timeline |
| CI Canadian REIT |
| Dynamic Active Global |
CI Canadian and Dynamic Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canadian and Dynamic Active
The main advantage of trading using opposite CI Canadian and Dynamic Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canadian position performs unexpectedly, Dynamic Active 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 Dynamic Active will offset losses from the drop in Dynamic Active's long position.| CI Canadian vs. BMO Equal Weight | CI Canadian vs. Vanguard FTSE Canadian | CI Canadian vs. iShares SPTSX Capped | CI Canadian vs. BMO Equal Weight |
| Dynamic Active vs. Dynamic Active Canadian | Dynamic Active vs. Dynamic Active Dividend | Dynamic Active vs. Dynamic Active Global | Dynamic Active vs. Dynamic Active Mid Cap |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| 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 | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |