Correlation Between CI Munro and IShares SPTSX
Can any of the company-specific risk be diversified away by investing in both CI Munro and IShares SPTSX 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 Munro and IShares SPTSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Munro Alternative and iShares SPTSX 60, you can compare the effects of market volatilities on CI Munro and IShares SPTSX 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 Munro with a short position of IShares SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Munro and IShares SPTSX.
Diversification Opportunities for CI Munro and IShares SPTSX
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CMAG and IShares is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CI Munro Alternative and iShares SPTSX 60 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SPTSX 60 and CI Munro 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 Munro Alternative are associated (or correlated) with IShares SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SPTSX 60 has no effect on the direction of CI Munro i.e., CI Munro and IShares SPTSX go up and down completely randomly.
Pair Corralation between CI Munro and IShares SPTSX
Assuming the 90 days trading horizon CI Munro Alternative is expected to under-perform the IShares SPTSX. In addition to that, CI Munro is 1.81 times more volatile than iShares SPTSX 60. It trades about -0.08 of its total potential returns per unit of risk. iShares SPTSX 60 is currently generating about 0.03 per unit of volatility. If you would invest 3,703 in iShares SPTSX 60 on December 29, 2024 and sell it today you would earn a total of 52.00 from holding iShares SPTSX 60 or generate 1.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
CI Munro Alternative vs. iShares SPTSX 60
Performance |
Timeline |
CI Munro Alternative |
iShares SPTSX 60 |
CI Munro and IShares SPTSX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Munro and IShares SPTSX
The main advantage of trading using opposite CI Munro and IShares SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Munro position performs unexpectedly, IShares SPTSX 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 IShares SPTSX will offset losses from the drop in IShares SPTSX's long position.CI Munro vs. CI Marret Alternative | CI Munro vs. Dynamic Active Global | CI Munro vs. CI Enhanced Short | CI Munro vs. CI Enhanced Government |
IShares SPTSX vs. iShares Core SP | IShares SPTSX vs. iShares Core SPTSX | IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Capped |
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.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |