Correlation Between CI Marret and CI Investment
Can any of the company-specific risk be diversified away by investing in both CI Marret and CI Investment 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 Marret and CI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Marret Alternative and CI Investment Grade, you can compare the effects of market volatilities on CI Marret and CI Investment 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 Marret with a short position of CI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Marret and CI Investment.
Diversification Opportunities for CI Marret and CI Investment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CMAR and FIG is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CI Marret Alternative and CI Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Investment Grade and CI Marret 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 Marret Alternative are associated (or correlated) with CI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Investment Grade has no effect on the direction of CI Marret i.e., CI Marret and CI Investment go up and down completely randomly.
Pair Corralation between CI Marret and CI Investment
Assuming the 90 days trading horizon CI Marret Alternative is expected to generate about the same return on investment as CI Investment Grade. But, CI Marret Alternative is 1.13 times less risky than CI Investment. It trades about 0.08 of its potential returns per unit of risk. CI Investment Grade is currently generating about 0.07 per unit of risk. If you would invest 943.00 in CI Investment Grade on December 1, 2024 and sell it today you would earn a total of 14.00 from holding CI Investment Grade or generate 1.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CI Marret Alternative vs. CI Investment Grade
Performance |
Timeline |
CI Marret Alternative |
CI Investment Grade |
CI Marret and CI Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Marret and CI Investment
The main advantage of trading using opposite CI Marret and CI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Marret position performs unexpectedly, CI Investment 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 Investment will offset losses from the drop in CI Investment's long position.CI Marret vs. CI Munro Alternative | CI Marret vs. CI Lawrence Park | CI Marret vs. CI Enhanced Short | CI Marret vs. CI Enhanced Government |
CI Investment vs. CI Enhanced Short | CI Investment vs. Global X Active | CI Investment vs. Mackenzie Unconstrained Bond | CI Investment vs. CI Enhanced Government |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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