Correlation Between BMO Aggregate and CI Global
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By analyzing existing cross correlation between BMO Aggregate Bond and CI Global Resource, you can compare the effects of market volatilities on BMO Aggregate 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 BMO Aggregate with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and CI Global.
Diversification Opportunities for BMO Aggregate and CI Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BMO and 0P000070I2 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource and BMO Aggregate 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 BMO Aggregate Bond 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 Resource has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and CI Global go up and down completely randomly.
Pair Corralation between BMO Aggregate and CI Global
Assuming the 90 days trading horizon BMO Aggregate Bond is expected to under-perform the CI Global. But the etf apears to be less risky and, when comparing its historical volatility, BMO Aggregate Bond is 3.68 times less risky than CI Global. The etf trades about -0.14 of its potential returns per unit of risk. The CI Global Resource is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,812 in CI Global Resource on September 13, 2024 and sell it today you would earn a total of 181.00 from holding CI Global Resource or generate 6.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
BMO Aggregate Bond vs. CI Global Resource
Performance |
Timeline |
BMO Aggregate Bond |
CI Global Resource |
BMO Aggregate and CI Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BMO Aggregate and CI Global
The main advantage of trading using opposite BMO Aggregate and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate 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.BMO Aggregate vs. BMO Short Term Bond | BMO Aggregate vs. BMO Canadian Bank | BMO Aggregate vs. BMO Aggregate Bond | BMO Aggregate vs. BMO Balanced ETF |
CI Global vs. BMO Aggregate Bond | CI Global vs. iShares Canadian HYBrid | CI Global vs. Brompton European Dividend | CI Global vs. Solar Alliance Energy |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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