Correlation Between NVIDIACDR and CI Financial
Can any of the company-specific risk be diversified away by investing in both NVIDIACDR and CI Financial 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 NVIDIACDR and CI Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA CDR and CI Financial Corp, you can compare the effects of market volatilities on NVIDIACDR and CI Financial 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 NVIDIACDR with a short position of CI Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIACDR and CI Financial.
Diversification Opportunities for NVIDIACDR and CI Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NVIDIACDR and CIX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and NVIDIACDR 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 NVIDIA CDR are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of NVIDIACDR i.e., NVIDIACDR and CI Financial go up and down completely randomly.
Pair Corralation between NVIDIACDR and CI Financial
Assuming the 90 days trading horizon NVIDIA CDR is expected to under-perform the CI Financial. In addition to that, NVIDIACDR is 17.34 times more volatile than CI Financial Corp. It trades about -0.07 of its total potential returns per unit of risk. CI Financial Corp is currently generating about 0.13 per unit of volatility. If you would invest 3,078 in CI Financial Corp on December 3, 2024 and sell it today you would earn a total of 57.00 from holding CI Financial Corp or generate 1.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NVIDIA CDR vs. CI Financial Corp
Performance |
Timeline |
NVIDIA CDR |
CI Financial Corp |
NVIDIACDR and CI Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NVIDIACDR and CI Financial
The main advantage of trading using opposite NVIDIACDR and CI Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIACDR position performs unexpectedly, CI Financial 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 Financial will offset losses from the drop in CI Financial's long position.NVIDIACDR vs. SalesforceCom CDR | NVIDIACDR vs. Mako Mining Corp | NVIDIACDR vs. Perseus Mining | NVIDIACDR vs. Precious Metals And |
CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Great West Lifeco | CI Financial vs. Laurentian Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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