Correlation Between RBC Portefeuille and CI Global

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

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

Diversification Opportunities for RBC Portefeuille and CI Global

0.02

Correlation Coefficient

RBC Portefeuille  CI Global

Significant diversification

The 3 months correlation between RBC and CUBD is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding RBC Portefeuille de and CI Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Unconstrained and RBC Portefeuille 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 RBC Portefeuille de 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 Unconstrained has no effect on the direction of RBC Portefeuille i.e., RBC Portefeuille and CI Global go up and down completely randomly.

Pair Corralation between RBC Portefeuille and CI Global

Assuming the 90 days trading horizon RBC Portefeuille de is expected to generate 1.77 times more return on investment than CI Global. However, RBC Portefeuille is 1.77 times more volatile than CI Global Unconstrained. It trades about 0.3 of its potential returns per unit of risk. CI Global Unconstrained is currently generating about 0.09 per unit of risk. If you would invest  3,921  in RBC Portefeuille de on September 11, 2024 and sell it today you would earn a total of  299.00  from holding RBC Portefeuille de or generate 7.63% return on investment over 90 days.

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

RBC Portefeuille de  vs.  CI Global Unconstrained

RBC Portefeuille

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Portefeuille de are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, RBC Portefeuille may actually be approaching a critical reversion point that can send shares even higher in January 2025.

CI Global Unconstrained

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Unconstrained are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, CI Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with RBC Portefeuille and CI Global

The main advantage of trading using opposite RBC Portefeuille and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Portefeuille 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 RBC Portefeuille de and CI Global Unconstrained 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.