Correlation Between CI Global and Sustainable Real

Can any of the company-specific risk be diversified away by investing in both CI Global and Sustainable Real 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 CI Global and Sustainable Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CI Global Alpha and Sustainable Real Estate, you can compare the effects of market volatilities on CI Global and Sustainable Real 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 CI Global with a short position of Sustainable Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Sustainable Real.

Diversification Opportunities for CI Global and Sustainable Real

0.0

Correlation Coefficient

CI Global  Sustainable Real

Pay attention - limited upside

The 3 months correlation between 0P000070HA and Sustainable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Alpha and Sustainable Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sustainable Real Estate and CI Global 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 CI Global Alpha are associated (or correlated) with Sustainable Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sustainable Real Estate has no effect on the direction of CI Global i.e., CI Global and Sustainable Real go up and down completely randomly.

Pair Corralation between CI Global and Sustainable Real

Assuming the 90 days trading horizon CI Global Alpha is expected to generate 1.13 times more return on investment than Sustainable Real. However, CI Global is 1.13 times more volatile than Sustainable Real Estate. It trades about 0.13 of its potential returns per unit of risk. Sustainable Real Estate is currently generating about 0.01 per unit of risk. If you would invest  4,964  in CI Global Alpha on October 22, 2024 and sell it today you would earn a total of  6,132  from holding CI Global Alpha or generate 123.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CI Global Alpha  vs.  Sustainable Real Estate

CI Global Alpha

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Alpha are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating basic indicators, CI Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Sustainable Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sustainable Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical and fundamental indicators, Sustainable Real is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CI Global and Sustainable Real

The main advantage of trading using opposite CI Global and Sustainable Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Sustainable Real 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 Sustainable Real will offset losses from the drop in Sustainable Real's long position.

The idea behind CI Global Alpha and Sustainable Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.