Correlation Between Sonida Senior and CI Financial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and CI Financial Corp, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and CI Financial.

Diversification Opportunities for Sonida Senior and CI Financial

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Sonida and CIXXF is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living 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 Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and CI Financial go up and down completely randomly.

Pair Corralation between Sonida Senior and CI Financial

If you would invest  2,259  in Sonida Senior Living on September 14, 2024 and sell it today you would earn a total of  133.00  from holding Sonida Senior Living or generate 5.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Sonida Senior Living  vs.  CI Financial Corp

 Performance 
       Timeline  
Sonida Senior Living 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sonida Senior Living has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Sonida Senior is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
CI Financial Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CI Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CI Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Sonida Senior and CI Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sonida Senior and CI Financial

The main advantage of trading using opposite Sonida Senior and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.
The idea behind Sonida Senior Living and CI Financial Corp 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.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk