Correlation Between CI Gold and Canadian High

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

By analyzing existing cross correlation between CI Gold Bullion and Canadian High Income, you can compare the effects of market volatilities on CI Gold and Canadian High 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 Gold with a short position of Canadian High. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and Canadian High.

Diversification Opportunities for CI Gold and Canadian High

0.0

Correlation Coefficient

CI Gold  Canadian High

Pay attention - limited upside

The 3 months correlation between VALT-B and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Bullion and Canadian High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian High Income and CI Gold 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 Gold Bullion are associated (or correlated) with Canadian High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian High Income has no effect on the direction of CI Gold i.e., CI Gold and Canadian High go up and down completely randomly.

Pair Corralation between CI Gold and Canadian High

Assuming the 90 days trading horizon CI Gold Bullion is expected to generate 1.35 times more return on investment than Canadian High. However, CI Gold is 1.35 times more volatile than Canadian High Income. It trades about 0.1 of its potential returns per unit of risk. Canadian High Income is currently generating about 0.06 per unit of risk. If you would invest  3,213  in CI Gold Bullion on October 9, 2024 and sell it today you would earn a total of  540.00  from holding CI Gold Bullion or generate 16.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.46%
Values	Daily Returns

CI Gold Bullion  vs.  Canadian High Income

CI Gold Bullion

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CI Gold Bullion are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, CI Gold is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Canadian High Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canadian High Income has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Canadian High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CI Gold and Canadian High

The main advantage of trading using opposite CI Gold and Canadian High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold position performs unexpectedly, Canadian High 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 Canadian High will offset losses from the drop in Canadian High's long position.

The idea behind CI Gold Bullion and Canadian High Income 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.