Correlation Between IShares Core and CI Canadian
Can any of the company-specific risk be diversified away by investing in both IShares Core and CI Canadian 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 Core and CI Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Canadian and CI Canadian Short Term, you can compare the effects of market volatilities on IShares Core and CI Canadian 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 Core with a short position of CI Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and CI Canadian.
Diversification Opportunities for IShares Core and CI Canadian
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and CAGS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Canadian and CI Canadian Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Canadian Short and IShares Core 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 Core Canadian are associated (or correlated) with CI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Canadian Short has no effect on the direction of IShares Core i.e., IShares Core and CI Canadian go up and down completely randomly.
Pair Corralation between IShares Core and CI Canadian
Assuming the 90 days trading horizon iShares Core Canadian is expected to generate 4.01 times more return on investment than CI Canadian. However, IShares Core is 4.01 times more volatile than CI Canadian Short Term. It trades about 0.05 of its potential returns per unit of risk. CI Canadian Short Term is currently generating about 0.17 per unit of risk. If you would invest 1,908 in iShares Core Canadian on September 14, 2024 and sell it today you would earn a total of 78.00 from holding iShares Core Canadian or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core Canadian vs. CI Canadian Short Term
Performance |
| Timeline |
| iShares Core Canadian |
| CI Canadian Short |
IShares Core and CI Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and CI Canadian
The main advantage of trading using opposite IShares Core and CI Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, CI Canadian 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 Canadian will offset losses from the drop in CI Canadian's long position.| IShares Core vs. iShares Canadian Government | IShares Core vs. iShares Core Canadian | IShares Core vs. iShares Canadian Short | IShares Core vs. iShares Canadian Real |
| CI Canadian vs. iShares Canadian Universe | CI Canadian vs. iShares Canadian Real | CI Canadian vs. iShares Core Canadian | CI Canadian vs. iShares Core Canadian |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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