Correlation Between Canaccord Genuity and CI Financial
Can any of the company-specific risk be diversified away by investing in both Canaccord Genuity and CI Financial 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 Canaccord Genuity and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaccord Genuity Group and CI Financial Corp, you can compare the effects of market volatilities on Canaccord Genuity and CI Financial 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 Canaccord Genuity with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaccord Genuity and CI Financial.
Diversification Opportunities for Canaccord Genuity and CI Financial
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canaccord and CIX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Canaccord Genuity Group and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and Canaccord Genuity 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 Canaccord Genuity Group are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Canaccord Genuity i.e., Canaccord Genuity and CI Financial go up and down completely randomly.
Pair Corralation between Canaccord Genuity and CI Financial
Assuming the 90 days horizon Canaccord Genuity Group is expected to under-perform the CI Financial. In addition to that, Canaccord Genuity is 11.77 times more volatile than CI Financial Corp. It trades about -0.06 of its total potential returns per unit of risk. CI Financial Corp is currently generating about 0.13 per unit of volatility. If you would invest 3,075 in CI Financial Corp on December 29, 2024 and sell it today you would earn a total of 47.00 from holding CI Financial Corp or generate 1.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Canaccord Genuity Group vs. CI Financial Corp
Performance |
Timeline |
Canaccord Genuity |
CI Financial Corp |
Canaccord Genuity and CI Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canaccord Genuity and CI Financial
The main advantage of trading using opposite Canaccord Genuity and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaccord Genuity position performs unexpectedly, CI Financial 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 Financial will offset losses from the drop in CI Financial's long position.Canaccord Genuity vs. CI Financial Corp | Canaccord Genuity vs. ECN Capital Corp | Canaccord Genuity vs. Element Fleet Management | Canaccord Genuity vs. Martinrea International |
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Check out your portfolio center.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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