Correlation Between Accelerate Arbitrage and CI Munro

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

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

Diversification Opportunities for Accelerate Arbitrage and CI Munro

0.91

Correlation Coefficient

Accelerate Arbitrage  CI Munro

Almost no diversification

The 3 months correlation between Accelerate and CMAG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Arbitrage and CI Munro Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Munro Alternative and Accelerate Arbitrage 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 Accelerate Arbitrage are associated (or correlated) with CI Munro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Munro Alternative has no effect on the direction of Accelerate Arbitrage i.e., Accelerate Arbitrage and CI Munro go up and down completely randomly.

Pair Corralation between Accelerate Arbitrage and CI Munro

Assuming the 90 days trading horizon Accelerate Arbitrage is expected to generate 3.19 times less return on investment than CI Munro. But when comparing it to its historical volatility, Accelerate Arbitrage is 1.46 times less risky than CI Munro. It trades about 0.18 of its potential returns per unit of risk. CI Munro Alternative is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  3,308  in CI Munro Alternative on April 20, 2025 and sell it today you would earn a total of  751.00  from holding CI Munro Alternative or generate 22.7% return on investment over 90 days.

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

Accelerate Arbitrage  vs.  CI Munro Alternative

Accelerate Arbitrage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accelerate Arbitrage are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Accelerate Arbitrage may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CI Munro Alternative

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CI Munro Alternative are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Munro displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accelerate Arbitrage and CI Munro

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

The idea behind Accelerate Arbitrage and CI Munro Alternative 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.