Correlation Between Cibc Atlas and Invesco Disciplined

Can any of the company-specific risk be diversified away by investing in both Cibc Atlas and Invesco Disciplined 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 Cibc Atlas and Invesco Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cibc Atlas All and Invesco Disciplined Equity, you can compare the effects of market volatilities on Cibc Atlas and Invesco Disciplined 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 Cibc Atlas with a short position of Invesco Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibc Atlas and Invesco Disciplined.

Diversification Opportunities for Cibc Atlas and Invesco Disciplined

0.96

Correlation Coefficient

Cibc Atlas  Invesco Disciplined

Almost no diversification

The 3 months correlation between Cibc and Invesco is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas All and Invesco Disciplined Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Disciplined and Cibc Atlas 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 Cibc Atlas All are associated (or correlated) with Invesco Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Disciplined has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and Invesco Disciplined go up and down completely randomly.

Pair Corralation between Cibc Atlas and Invesco Disciplined

Assuming the 90 days horizon Cibc Atlas All is expected to under-perform the Invesco Disciplined. In addition to that, Cibc Atlas is 1.45 times more volatile than Invesco Disciplined Equity. It trades about -0.15 of its total potential returns per unit of risk. Invesco Disciplined Equity is currently generating about -0.12 per unit of volatility. If you would invest  3,385  in Invesco Disciplined Equity on November 29, 2024 and sell it today you would lose (237.00) from holding Invesco Disciplined Equity or give up 7.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Cibc Atlas All  vs.  Invesco Disciplined Equity

Cibc Atlas All

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cibc Atlas All has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Invesco Disciplined

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invesco Disciplined Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Cibc Atlas and Invesco Disciplined

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

The idea behind Cibc Atlas All and Invesco Disciplined Equity 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.