Correlation Between Tarku Resources and CI Global

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

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

Diversification Opportunities for Tarku Resources and CI Global

-0.35

Correlation Coefficient

Tarku Resources  CI Global

Very good diversification

The 3 months correlation between Tarku and FSF is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tarku Resources and CI Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Financial and Tarku Resources 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 Tarku Resources 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 Financial has no effect on the direction of Tarku Resources i.e., Tarku Resources and CI Global go up and down completely randomly.

Pair Corralation between Tarku Resources and CI Global

Assuming the 90 days horizon Tarku Resources is not expected to generate positive returns. Moreover, Tarku Resources is 21.68 times more volatile than CI Global Financial. It trades away all of its potential returns to assume current level of volatility. CI Global Financial is currently generating about 0.28 per unit of risk. If you would invest  3,055  in CI Global Financial on October 25, 2024 and sell it today you would earn a total of  163.00  from holding CI Global Financial or generate 5.34% return on investment over 90 days.

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

Tarku Resources  vs.  CI Global Financial

Tarku Resources

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tarku Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Tarku Resources showed solid returns over the last few months and may actually be approaching a breakup point.

CI Global Financial

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Financial are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, CI Global may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Tarku Resources and CI Global

The main advantage of trading using opposite Tarku Resources and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tarku Resources 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 Tarku Resources and CI Global Financial 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.