Correlation Between Harvest Global and CI Global

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Can any of the company-specific risk be diversified away by investing in both Harvest Global and CI Global 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 Harvest Global and CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Global REIT and CI Global Real, you can compare the effects of market volatilities on Harvest Global and CI Global 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 Harvest Global with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and CI Global.

Diversification Opportunities for Harvest Global and CI Global

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Harvest and CGRA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real and Harvest Global 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 Harvest Global REIT are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Real has no effect on the direction of Harvest Global i.e., Harvest Global and CI Global go up and down completely randomly.

Pair Corralation between Harvest Global and CI Global

Assuming the 90 days trading horizon Harvest Global REIT is expected to under-perform the CI Global. In addition to that, Harvest Global is 1.49 times more volatile than CI Global Real. It trades about -0.1 of its total potential returns per unit of risk. CI Global Real is currently generating about -0.02 per unit of volatility. If you would invest  2,252  in CI Global Real on October 5, 2024 and sell it today you would lose (21.00) from holding CI Global Real or give up 0.93% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Harvest Global REIT  vs.  CI Global Real

 Performance 
       Timeline  
Harvest Global REIT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Harvest Global REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Harvest Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
CI Global Real 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CI Global Real has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, CI Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Harvest Global and CI Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Harvest Global and CI Global

The main advantage of trading using opposite Harvest Global and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global position performs unexpectedly, CI Global 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 Global will offset losses from the drop in CI Global's long position.
The idea behind Harvest Global REIT and CI Global Real 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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