Correlation Between CI Galaxy and Guardian Ultra

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

By analyzing existing cross correlation between CI Galaxy Blockchain and Guardian Ultra Short Canadian, you can compare the effects of market volatilities on CI Galaxy and Guardian Ultra 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 Galaxy with a short position of Guardian Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Guardian Ultra.

Diversification Opportunities for CI Galaxy and Guardian Ultra

0.93

Correlation Coefficient

CI Galaxy  Guardian Ultra

Almost no diversification

The 3 months correlation between CBCX and Guardian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Guardian Ultra Short Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Ultra Short and CI Galaxy 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 Galaxy Blockchain are associated (or correlated) with Guardian Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Ultra Short has no effect on the direction of CI Galaxy i.e., CI Galaxy and Guardian Ultra go up and down completely randomly.

Pair Corralation between CI Galaxy and Guardian Ultra

Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to generate 221.69 times more return on investment than Guardian Ultra. However, CI Galaxy is 221.69 times more volatile than Guardian Ultra Short Canadian. It trades about 0.25 of its potential returns per unit of risk. Guardian Ultra Short Canadian is currently generating about 0.63 per unit of risk. If you would invest  2,378  in CI Galaxy Blockchain on April 24, 2025 and sell it today you would earn a total of  1,529  from holding CI Galaxy Blockchain or generate 64.3% return on investment over 90 days.

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

CI Galaxy Blockchain  vs.  Guardian Ultra Short Canadian

CI Galaxy Blockchain

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Galaxy Blockchain are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Galaxy displayed solid returns over the last few months and may actually be approaching a breakup point.

Guardian Ultra Short

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Ultra Short Canadian are ranked lower than 49 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Guardian Ultra 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 Galaxy and Guardian Ultra

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

The idea behind CI Galaxy Blockchain and Guardian Ultra Short Canadian 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.