Correlation Between CI Financial and Power
Can any of the company-specific risk be diversified away by investing in both CI Financial and Power 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 Financial and Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Financial Corp and Power, you can compare the effects of market volatilities on CI Financial and Power 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 Financial with a short position of Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Power.
Diversification Opportunities for CI Financial and Power
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIX and Power is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power and CI Financial 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 Financial Corp are associated (or correlated) with Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power has no effect on the direction of CI Financial i.e., CI Financial and Power go up and down completely randomly.
Pair Corralation between CI Financial and Power
Assuming the 90 days trading horizon CI Financial Corp is expected to generate 10.18 times more return on investment than Power. However, CI Financial is 10.18 times more volatile than Power. It trades about 0.22 of its potential returns per unit of risk. Power is currently generating about 0.07 per unit of risk. If you would invest 2,369 in CI Financial Corp on September 18, 2024 and sell it today you would earn a total of 731.00 from holding CI Financial Corp or generate 30.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CI Financial Corp vs. Power
Performance |
Timeline |
CI Financial Corp |
Power |
CI Financial and Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Financial and Power
The main advantage of trading using opposite CI Financial and Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Power 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 Power will offset losses from the drop in Power's long position.CI Financial vs. IGM Financial | CI Financial vs. iA Financial | CI Financial vs. Canadian Western Bank | CI Financial vs. Great West Lifeco |
Power vs. Tree Island Steel | Power vs. BMTC Group | Power vs. Dexterra Group | Power vs. Accord Financial Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
CEOs Directory Screen CEOs from public companies around the world |