Correlation Between TD Active and CI Global
Can any of the company-specific risk be diversified away by investing in both TD Active and CI 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 TD Active and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TD Active Global and CI Global REIT, you can compare the effects of market volatilities on TD Active 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 TD Active with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Active and CI Global.
Diversification Opportunities for TD Active and CI Global
Good diversification
The 3 months correlation between TINF and CGRE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding TD Active Global and CI Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global REIT and TD Active 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 TD Active Global 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 REIT has no effect on the direction of TD Active i.e., TD Active and CI Global go up and down completely randomly.
Pair Corralation between TD Active and CI Global
Assuming the 90 days trading horizon TD Active Global is expected to generate 1.16 times more return on investment than CI Global. However, TD Active is 1.16 times more volatile than CI Global REIT. It trades about 0.15 of its potential returns per unit of risk. CI Global REIT is currently generating about -0.02 per unit of risk. If you would invest 2,129 in TD Active Global on August 29, 2024 and sell it today you would earn a total of 48.00 from holding TD Active Global or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TD Active Global vs. CI Global REIT
Performance |
| Timeline |
| TD Active Global |
| CI Global REIT |
TD Active and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Active and CI Global
The main advantage of trading using opposite TD Active and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Active 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.| TD Active vs. CI Global REIT | TD Active vs. CI Global Real | TD Active vs. CI Marret Alternative | TD Active vs. CI Global Financial |
| CI Global vs. iShares SPTSX Capped | CI Global vs. iShares Canadian Select | CI Global vs. iShares SPTSX Capped | CI Global vs. iShares Diversified Monthly |
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 Stocks Directory module to find actively traded stocks across global markets.
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