Correlation Between CI Financial and Q Gold

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

By analyzing existing cross correlation between CI Financial Corp and Q Gold Resources, you can compare the effects of market volatilities on CI Financial and Q Gold 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 Financial with a short position of Q Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Q Gold.

Diversification Opportunities for CI Financial and Q Gold

-0.53

Correlation Coefficient

CI Financial  Q Gold

Excellent diversification

The 3 months correlation between CIX and QGR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Q Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q Gold Resources and CI Financial 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 Financial Corp are associated (or correlated) with Q Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q Gold Resources has no effect on the direction of CI Financial i.e., CI Financial and Q Gold go up and down completely randomly.

Pair Corralation between CI Financial and Q Gold

Assuming the 90 days trading horizon CI Financial Corp is expected to generate 0.48 times more return on investment than Q Gold. However, CI Financial Corp is 2.07 times less risky than Q Gold. It trades about 0.18 of its potential returns per unit of risk. Q Gold Resources is currently generating about -0.06 per unit of risk. If you would invest  2,092  in CI Financial Corp on October 23, 2024 and sell it today you would earn a total of  1,010  from holding CI Financial Corp or generate 48.28% return on investment over 90 days.

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

CI Financial Corp  vs.  Q Gold Resources

CI Financial Corp

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CI Financial Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

Q Gold Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Q Gold Resources 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 Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CI Financial and Q Gold

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

The idea behind CI Financial Corp and Q Gold Resources 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.