Correlation Between Mawer Global and CI Signature

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

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

Diversification Opportunities for Mawer Global and CI Signature

-0.3

Correlation Coefficient

Mawer Global  CI Signature

Very good diversification

The 3 months correlation between Mawer and 0P0001FKWD is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Small and CI Signature Cat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Signature Cat and Mawer 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 Mawer Global Small are associated (or correlated) with CI Signature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Signature Cat has no effect on the direction of Mawer Global i.e., Mawer Global and CI Signature go up and down completely randomly.

Pair Corralation between Mawer Global and CI Signature

Assuming the 90 days trading horizon Mawer Global Small is expected to generate 0.43 times more return on investment than CI Signature. However, Mawer Global Small is 2.33 times less risky than CI Signature. It trades about 0.12 of its potential returns per unit of risk. CI Signature Cat is currently generating about -0.07 per unit of risk. If you would invest  1,533  in Mawer Global Small on December 28, 2024 and sell it today you would earn a total of  87.00  from holding Mawer Global Small or generate 5.68% return on investment over 90 days.

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

Mawer Global Small  vs.  CI Signature Cat

Mawer Global Small

Risk-Adjusted Performance

OK

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

CI Signature Cat

Risk-Adjusted Performance

Very Weak

Over the last 90 days CI Signature Cat has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the mutual fund stockholders.

Pair Trading with Mawer Global and CI Signature

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

The idea behind Mawer Global Small and CI Signature Cat 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.