Correlation Between Symphony Floating and CI Global
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By analyzing existing cross correlation between Symphony Floating Rate and CI Global Alpha, you can compare the effects of market volatilities on Symphony Floating 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 Symphony Floating with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Floating and CI Global.
Diversification Opportunities for Symphony Floating and CI Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Symphony and CIG18006 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Floating Rate and CI Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Alpha and Symphony Floating 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 Symphony Floating Rate 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 Alpha has no effect on the direction of Symphony Floating i.e., Symphony Floating and CI Global go up and down completely randomly.
Pair Corralation between Symphony Floating and CI Global
Assuming the 90 days trading horizon Symphony Floating is expected to generate 12.47 times less return on investment than CI Global. But when comparing it to its historical volatility, Symphony Floating Rate is 2.27 times less risky than CI Global. It trades about 0.07 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 9,308 in CI Global Alpha on September 1, 2024 and sell it today you would earn a total of 1,072 from holding CI Global Alpha or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Floating Rate vs. CI Global Alpha
Performance |
| Timeline |
| Symphony Floating Rate |
| CI Global Alpha |
Symphony Floating and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Floating and CI Global
The main advantage of trading using opposite Symphony Floating and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Floating 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.| Symphony Floating vs. Blue Ribbon Income | Symphony Floating vs. Canadian High Income | Symphony Floating vs. MINT Income Fund | Symphony Floating vs. Brompton Lifeco Split |
| CI Global vs. RBC Select Balanced | CI Global vs. RBC Portefeuille de | CI Global vs. Edgepoint Global Portfolio | CI Global vs. TD Comfort Balanced |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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