Correlation Between CIBC Flexible and Global X
Can any of the company-specific risk be diversified away by investing in both CIBC Flexible and Global X 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 Flexible and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIBC Flexible Yield and Global X Global, you can compare the effects of market volatilities on CIBC Flexible and Global X 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 Flexible with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Flexible and Global X.
Diversification Opportunities for CIBC Flexible and Global X
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CIBC and Global is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Flexible Yield and Global X Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Global and CIBC Flexible 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 Flexible Yield are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Global has no effect on the direction of CIBC Flexible i.e., CIBC Flexible and Global X go up and down completely randomly.
Pair Corralation between CIBC Flexible and Global X
Assuming the 90 days trading horizon CIBC Flexible Yield is expected to generate 0.21 times more return on investment than Global X. However, CIBC Flexible Yield is 4.74 times less risky than Global X. It trades about 0.14 of its potential returns per unit of risk. Global X Global is currently generating about 0.0 per unit of risk. If you would invest 1,680 in CIBC Flexible Yield on October 9, 2024 and sell it today you would earn a total of 20.00 from holding CIBC Flexible Yield or generate 1.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CIBC Flexible Yield vs. Global X Global
Performance |
Timeline |
CIBC Flexible Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Global X Global |
CIBC Flexible and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIBC Flexible and Global X
The main advantage of trading using opposite CIBC Flexible and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIBC Flexible position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.CIBC Flexible vs. CIBC Active Investment | CIBC Flexible vs. CIBC Core Fixed | CIBC Flexible vs. Brompton Flaherty Crumrine |
Global X vs. Global X Industry | Global X vs. Global X Big | Global X vs. Evolve Innovation Index | Global X vs. Global X Robotics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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