Correlation Between CI Galaxy and Evolve Global

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

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

Diversification Opportunities for CI Galaxy and Evolve Global

-0.56

Correlation Coefficient

CI Galaxy  Evolve Global

Excellent diversification

The 3 months correlation between CBCX and Evolve is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Evolve Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Healthcare and CI Galaxy 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 Galaxy Blockchain are associated (or correlated) with Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Healthcare has no effect on the direction of CI Galaxy i.e., CI Galaxy and Evolve Global go up and down completely randomly.

Pair Corralation between CI Galaxy and Evolve Global

Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to under-perform the Evolve Global. In addition to that, CI Galaxy is 6.87 times more volatile than Evolve Global Healthcare. It trades about -0.11 of its total potential returns per unit of risk. Evolve Global Healthcare is currently generating about 0.16 per unit of volatility. If you would invest  1,890  in Evolve Global Healthcare on December 30, 2024 and sell it today you would earn a total of  125.00  from holding Evolve Global Healthcare or generate 6.61% return on investment over 90 days.

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

CI Galaxy Blockchain  vs.  Evolve Global Healthcare

CI Galaxy Blockchain

Risk-Adjusted Performance

Very Weak

Over the last 90 days CI Galaxy Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Evolve Global Healthcare

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Global Healthcare are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Evolve Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CI Galaxy and Evolve Global

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

The idea behind CI Galaxy Blockchain and Evolve Global Healthcare 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.