Correlation Between CI Preferred and Lysander Slater

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

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

Diversification Opportunities for CI Preferred and Lysander Slater

0.63

Correlation Coefficient

CI Preferred  Lysander Slater

Poor diversification

The 3 months correlation between FPR and Lysander is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CI Preferred Share and Lysander Slater Preferred Shar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lysander Slater Pref and CI Preferred 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 Preferred Share are associated (or correlated) with Lysander Slater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lysander Slater Pref has no effect on the direction of CI Preferred i.e., CI Preferred and Lysander Slater go up and down completely randomly.

Pair Corralation between CI Preferred and Lysander Slater

Assuming the 90 days trading horizon CI Preferred is expected to generate 2.86 times less return on investment than Lysander Slater. In addition to that, CI Preferred is 1.05 times more volatile than Lysander Slater Preferred Share. It trades about 0.05 of its total potential returns per unit of risk. Lysander Slater Preferred Share is currently generating about 0.15 per unit of volatility. If you would invest  938.00  in Lysander Slater Preferred Share on September 30, 2024 and sell it today you would earn a total of  36.00  from holding Lysander Slater Preferred Share or generate 3.84% return on investment over 90 days.

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

CI Preferred Share  vs.  Lysander Slater Preferred Shar

CI Preferred Share

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CI Preferred Share are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Preferred is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Lysander Slater Pref

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lysander Slater Preferred Share are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Lysander Slater is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CI Preferred and Lysander Slater

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

The idea behind CI Preferred Share and Lysander Slater Preferred Share 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.