Correlation Between Mawer Canadien and CI Gold

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

By analyzing existing cross correlation between Mawer Canadien obligations and CI Gold Bullion, you can compare the effects of market volatilities on Mawer Canadien and CI Gold 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 Mawer Canadien with a short position of CI Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Canadien and CI Gold.

Diversification Opportunities for Mawer Canadien and CI Gold

0.0

Correlation Coefficient

Mawer Canadien  CI Gold

Pay attention - limited upside

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

Pair Corralation between Mawer Canadien and CI Gold

If you would invest  2,527  in CI Gold Bullion on October 4, 2024 and sell it today you would earn a total of  1,223  from holding CI Gold Bullion or generate 48.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

Mawer Canadien obligations  vs.  CI Gold Bullion

Mawer Canadien oblig

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Mawer Canadien obligations has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Mawer Canadien is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CI Gold Bullion

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CI Gold Bullion are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, CI Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mawer Canadien and CI Gold

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

The idea behind Mawer Canadien obligations and CI Gold Bullion 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.