Correlation Between CI Black and CDSPI Global

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

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

Diversification Opportunities for CI Black and CDSPI Global

-0.26

Correlation Coefficient

CI Black  CDSPI Global

Very good diversification

The 3 months correlation between 0P0000752C and CDSPI is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CI Black Creek and CDSPI Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI Global Growth and CI Black 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 Black Creek are associated (or correlated) with CDSPI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI Global Growth has no effect on the direction of CI Black i.e., CI Black and CDSPI Global go up and down completely randomly.

Pair Corralation between CI Black and CDSPI Global

Assuming the 90 days trading horizon CI Black Creek is expected to under-perform the CDSPI Global. In addition to that, CI Black is 1.38 times more volatile than CDSPI Global Growth. It trades about -0.1 of its total potential returns per unit of risk. CDSPI Global Growth is currently generating about 0.12 per unit of volatility. If you would invest  5,824  in CDSPI Global Growth on October 26, 2024 and sell it today you would earn a total of  322.00  from holding CDSPI Global Growth or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

CI Black Creek  vs.  CDSPI Global Growth

CI Black Creek

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CI Black Creek has generated negative risk-adjusted returns adding no value to fund investors. Despite latest unfluctuating performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

CDSPI Global Growth

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CDSPI Global Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, CDSPI Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CI Black and CDSPI Global

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

The idea behind CI Black Creek and CDSPI Global Growth 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.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.