Correlation Between Snap and CI Canadian
Can any of the company-specific risk be diversified away by investing in both Snap and CI Canadian 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 Snap and CI Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and CI Canadian REIT, you can compare the effects of market volatilities on Snap and CI Canadian 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 Snap with a short position of CI Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and CI Canadian.
Diversification Opportunities for Snap and CI Canadian
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and RIT is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and CI Canadian REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Canadian REIT and Snap 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 Snap Inc are associated (or correlated) with CI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Canadian REIT has no effect on the direction of Snap i.e., Snap and CI Canadian go up and down completely randomly.
Pair Corralation between Snap and CI Canadian
Given the investment horizon of 90 days Snap Inc is expected to under-perform the CI Canadian. In addition to that, Snap is 4.54 times more volatile than CI Canadian REIT. It trades about -0.27 of its total potential returns per unit of risk. CI Canadian REIT is currently generating about 0.15 per unit of volatility. If you would invest 1,642 in CI Canadian REIT on November 18, 2025 and sell it today you would earn a total of 99.00 from holding CI Canadian REIT or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. CI Canadian REIT
Performance |
| Timeline |
| Snap Inc |
| CI Canadian REIT |
Risk-Adjusted Performance
Good
Weak | Strong |
Snap and CI Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and CI Canadian
The main advantage of trading using opposite Snap and CI Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, CI Canadian 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 Canadian will offset losses from the drop in CI Canadian's long position.The idea behind Snap Inc and CI Canadian 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 Canadian vs. TD Q Global | CI Canadian vs. Fidelity Canadian High | CI Canadian vs. iShares Global Healthcare | CI Canadian vs. BMO Long Corporate |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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