Correlation Between CIBC Flexible and Purpose Total

Can any of the company-specific risk be diversified away by investing in both CIBC Flexible and Purpose Total 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 CIBC Flexible and Purpose Total into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CIBC Flexible Yield and Purpose Total Return, you can compare the effects of market volatilities on CIBC Flexible and Purpose Total 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 CIBC Flexible with a short position of Purpose Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Flexible and Purpose Total.

Diversification Opportunities for CIBC Flexible and Purpose Total

0.0

Correlation Coefficient

CIBC Flexible  Purpose Total

Pay attention - limited upside

The 3 months correlation between CIBC and Purpose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Flexible Yield and Purpose Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purpose Total Return and CIBC Flexible 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 CIBC Flexible Yield are associated (or correlated) with Purpose Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purpose Total Return has no effect on the direction of CIBC Flexible i.e., CIBC Flexible and Purpose Total go up and down completely randomly.

Pair Corralation between CIBC Flexible and Purpose Total

If you would invest  1,619  in Purpose Total Return on April 6, 2025 and sell it today you would earn a total of  42.00  from holding Purpose Total Return or generate 2.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

CIBC Flexible Yield  vs.  Purpose Total Return

CIBC Flexible Yield

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIBC Flexible Yield has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, CIBC Flexible is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Purpose Total Return

Risk-Adjusted Performance

Good

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

Pair Trading with CIBC Flexible and Purpose Total

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

The idea behind CIBC Flexible Yield and Purpose Total Return 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..