Correlation Between Chia and CI Select

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

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

Diversification Opportunities for Chia and CI Select

0.48

Correlation Coefficient

Chia  CI Select

Very weak diversification

The 3 months correlation between Chia and 0P000075PH is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chia and CI Select Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Select Global and Chia 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 Chia are associated (or correlated) with CI Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Select Global has no effect on the direction of Chia i.e., Chia and CI Select go up and down completely randomly.

Pair Corralation between Chia and CI Select

Assuming the 90 days trading horizon Chia is expected to under-perform the CI Select. In addition to that, Chia is 7.08 times more volatile than CI Select Global. It trades about -0.16 of its total potential returns per unit of risk. CI Select Global is currently generating about -0.02 per unit of volatility. If you would invest  2,886  in CI Select Global on October 11, 2024 and sell it today you would lose (9.00) from holding CI Select Global or give up 0.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	81.82%
Values	Daily Returns

Chia  vs.  CI Select Global

Chia

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chia are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Chia exhibited solid returns over the last few months and may actually be approaching a breakup point.

CI Select Global

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CI Select Global are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, CI Select is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Chia and CI Select

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

The idea behind Chia and CI Select Global 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.