Correlation Between Vanguard FTSE and CI ONE
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE and CI ONE 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 Vanguard FTSE and CI ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard FTSE Global and CI ONE Global, you can compare the effects of market volatilities on Vanguard FTSE and CI ONE 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 Vanguard FTSE with a short position of CI ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and CI ONE.
Diversification Opportunities for Vanguard FTSE and CI ONE
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and ONEQ is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Global and CI ONE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE Global and Vanguard FTSE 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 Vanguard FTSE Global are associated (or correlated) with CI ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE Global has no effect on the direction of Vanguard FTSE i.e., Vanguard FTSE and CI ONE go up and down completely randomly.
Pair Corralation between Vanguard FTSE and CI ONE
Assuming the 90 days trading horizon Vanguard FTSE Global is expected to generate 0.93 times more return on investment than CI ONE. However, Vanguard FTSE Global is 1.08 times less risky than CI ONE. It trades about 0.12 of its potential returns per unit of risk. CI ONE Global is currently generating about 0.11 per unit of risk. If you would invest 4,437 in Vanguard FTSE Global on August 30, 2024 and sell it today you would earn a total of 2,024 from holding Vanguard FTSE Global or generate 45.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard FTSE Global vs. CI ONE Global
Performance |
| Timeline |
| Vanguard FTSE Global |
| CI ONE Global |
Vanguard FTSE and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and CI ONE
The main advantage of trading using opposite Vanguard FTSE and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE position performs unexpectedly, CI ONE 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 ONE will offset losses from the drop in CI ONE's long position.| Vanguard FTSE vs. Vanguard FTSE Canada | Vanguard FTSE vs. Vanguard Canadian Aggregate | Vanguard FTSE vs. Vanguard Total Market | Vanguard FTSE vs. iShares Core MSCI |
| CI ONE vs. Guardian i3 Global | CI ONE vs. CI Global Real | CI ONE vs. CI Enhanced Short | CI ONE vs. BMO Aggregate Bond |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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