Correlation Between BMO Aggregate and CI Galaxy
Can any of the company-specific risk be diversified away by investing in both BMO Aggregate and CI Galaxy 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 BMO Aggregate and CI Galaxy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BMO Aggregate Bond and CI Galaxy Blockchain, you can compare the effects of market volatilities on BMO Aggregate and CI Galaxy 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 BMO Aggregate with a short position of CI Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and CI Galaxy.
Diversification Opportunities for BMO Aggregate and CI Galaxy
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BMO and CBCX is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and CI Galaxy Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Galaxy Blockchain and BMO Aggregate 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 BMO Aggregate Bond are associated (or correlated) with CI Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Galaxy Blockchain has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and CI Galaxy go up and down completely randomly.
Pair Corralation between BMO Aggregate and CI Galaxy
Assuming the 90 days trading horizon BMO Aggregate is expected to generate 189.81 times less return on investment than CI Galaxy. But when comparing it to its historical volatility, BMO Aggregate Bond is 14.09 times less risky than CI Galaxy. It trades about 0.01 of its potential returns per unit of risk. CI Galaxy Blockchain is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 885.00 in CI Galaxy Blockchain on September 2, 2024 and sell it today you would earn a total of 3,112 from holding CI Galaxy Blockchain or generate 351.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 67.8% |
| Values | Daily Returns |
BMO Aggregate Bond vs. CI Galaxy Blockchain
Performance |
| Timeline |
| BMO Aggregate Bond |
| CI Galaxy Blockchain |
BMO Aggregate and CI Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Aggregate and CI Galaxy
The main advantage of trading using opposite BMO Aggregate and CI Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate position performs unexpectedly, CI Galaxy 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 Galaxy will offset losses from the drop in CI Galaxy's long position.| BMO Aggregate vs. BMO Short Term Bond | BMO Aggregate vs. BMO Canadian Bank | BMO Aggregate vs. BMO Aggregate Bond | BMO Aggregate vs. BMO Balanced ETF |
| CI Galaxy vs. Forstrong Global Income | CI Galaxy vs. BMO Aggregate Bond | CI Galaxy vs. iShares Canadian HYBrid | CI Galaxy vs. Brompton European Dividend |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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