Correlation Between Canadian Imperial and Storage Vault
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Storage Vault 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 Canadian Imperial and Storage Vault into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and Storage Vault Canada, you can compare the effects of market volatilities on Canadian Imperial and Storage Vault 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 Canadian Imperial with a short position of Storage Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Storage Vault.
Diversification Opportunities for Canadian Imperial and Storage Vault
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Storage is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Storage Vault Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storage Vault Canada and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with Storage Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storage Vault Canada has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Storage Vault go up and down completely randomly.
Pair Corralation between Canadian Imperial and Storage Vault
Assuming the 90 days trading horizon Canadian Imperial Bank is expected to generate 0.14 times more return on investment than Storage Vault. However, Canadian Imperial Bank is 7.31 times less risky than Storage Vault. It trades about 0.19 of its potential returns per unit of risk. Storage Vault Canada is currently generating about -0.17 per unit of risk. If you would invest 2,463 in Canadian Imperial Bank on September 25, 2024 and sell it today you would earn a total of 84.00 from holding Canadian Imperial Bank or generate 3.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Canadian Imperial Bank vs. Storage Vault Canada
Performance |
Timeline |
Canadian Imperial Bank |
Storage Vault Canada |
Canadian Imperial and Storage Vault Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Imperial and Storage Vault
The main advantage of trading using opposite Canadian Imperial and Storage Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Storage Vault 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 Storage Vault will offset losses from the drop in Storage Vault's long position.Canadian Imperial vs. Canaf Investments | Canadian Imperial vs. HOME DEPOT CDR | Canadian Imperial vs. Leons Furniture Limited | Canadian Imperial vs. Vizsla Silver Corp |
Storage Vault vs. Colliers International Group | Storage Vault vs. CCL Industries | Storage Vault vs. Ritchie Bros Auctioneers | Storage Vault vs. Stantec |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
CEOs Directory Screen CEOs from public companies around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |