Correlation Between First Asset and CI Marret
Can any of the company-specific risk be diversified away by investing in both First Asset and CI Marret 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 First Asset and CI Marret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Asset Tech and CI Marret Alternative, you can compare the effects of market volatilities on First Asset and CI Marret 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 First Asset with a short position of CI Marret. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Asset and CI Marret.
Diversification Opportunities for First Asset and CI Marret
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and CMAR is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Tech and CI Marret Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Marret Alternative and First Asset 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 First Asset Tech are associated (or correlated) with CI Marret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Marret Alternative has no effect on the direction of First Asset i.e., First Asset and CI Marret go up and down completely randomly.
Pair Corralation between First Asset and CI Marret
Assuming the 90 days trading horizon First Asset Tech is expected to generate 5.21 times more return on investment than CI Marret. However, First Asset is 5.21 times more volatile than CI Marret Alternative. It trades about 0.05 of its potential returns per unit of risk. CI Marret Alternative is currently generating about 0.12 per unit of risk. If you would invest 2,048 in First Asset Tech on September 3, 2024 and sell it today you would earn a total of 143.00 from holding First Asset Tech or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Asset Tech vs. CI Marret Alternative
Performance |
| Timeline |
| First Asset Tech |
| CI Marret Alternative |
First Asset and CI Marret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Asset and CI Marret
The main advantage of trading using opposite First Asset and CI Marret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Asset position performs unexpectedly, CI Marret 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 Marret will offset losses from the drop in CI Marret's long position.| First Asset vs. International Zeolite Corp | First Asset vs. European Residential Real | First Asset vs. Financial 15 Split | First Asset vs. Rubicon Organics |
| CI Marret vs. First Asset Energy | CI Marret vs. First Asset Tech | CI Marret vs. Harvest Equal Weight | CI Marret vs. CI Canada Lifeco |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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