Correlation Between IShares SPTSX and CI Enhanced
Can any of the company-specific risk be diversified away by investing in both IShares SPTSX and CI Enhanced 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 IShares SPTSX and CI Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SPTSX Capped and CI Enhanced Short, you can compare the effects of market volatilities on IShares SPTSX and CI Enhanced 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 IShares SPTSX with a short position of CI Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SPTSX and CI Enhanced.
Diversification Opportunities for IShares SPTSX and CI Enhanced
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and FSB is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Capped and CI Enhanced Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Enhanced Short and IShares SPTSX 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 iShares SPTSX Capped are associated (or correlated) with CI Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Enhanced Short has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and CI Enhanced go up and down completely randomly.
Pair Corralation between IShares SPTSX and CI Enhanced
Assuming the 90 days trading horizon iShares SPTSX Capped is expected to under-perform the CI Enhanced. In addition to that, IShares SPTSX is 7.23 times more volatile than CI Enhanced Short. It trades about -0.16 of its total potential returns per unit of risk. CI Enhanced Short is currently generating about 0.09 per unit of volatility. If you would invest 967.00 in CI Enhanced Short on December 1, 2024 and sell it today you would earn a total of 3.00 from holding CI Enhanced Short or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SPTSX Capped vs. CI Enhanced Short
Performance |
| Timeline |
| iShares SPTSX Capped |
| CI Enhanced Short |
IShares SPTSX and CI Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SPTSX and CI Enhanced
The main advantage of trading using opposite IShares SPTSX and CI Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SPTSX position performs unexpectedly, CI Enhanced 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 Enhanced will offset losses from the drop in CI Enhanced's long position.| IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Global | IShares SPTSX vs. iShares SPTSX 60 | IShares SPTSX vs. iShares SPTSX Capped |
| CI Enhanced vs. CI Investment Grade | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. CI Preferred Share | CI Enhanced vs. CI Short Term |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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