Correlation Between CI Synergy and Edgepoint Cdn

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

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

Diversification Opportunities for CI Synergy and Edgepoint Cdn

0.0

Correlation Coefficient

CI Synergy  Edgepoint Cdn

Pay attention - limited upside

The 3 months correlation between 0P000075Q1 and Edgepoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Synergy American and Edgepoint Cdn Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Cdn Growth and CI Synergy 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 Synergy American are associated (or correlated) with Edgepoint Cdn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Cdn Growth has no effect on the direction of CI Synergy i.e., CI Synergy and Edgepoint Cdn go up and down completely randomly.

Pair Corralation between CI Synergy and Edgepoint Cdn

If you would invest  3,092  in Edgepoint Cdn Growth on October 26, 2024 and sell it today you would earn a total of  46.00  from holding Edgepoint Cdn Growth or generate 1.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CI Synergy American  vs.  Edgepoint Cdn Growth

CI Synergy American

Risk-Adjusted Performance

0 of 100

OK

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

Edgepoint Cdn Growth

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Edgepoint Cdn Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady forward-looking indicators, Edgepoint Cdn is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with CI Synergy and Edgepoint Cdn

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

The idea behind CI Synergy American and Edgepoint Cdn 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.