Correlation Between CI Global and Middlefield Sustainable
Can any of the company-specific risk be diversified away by investing in both CI Global and Middlefield Sustainable 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 Global and Middlefield Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Infrastructure and Middlefield Sustainable Infrastructure, you can compare the effects of market volatilities on CI Global and Middlefield Sustainable 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 Global with a short position of Middlefield Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Middlefield Sustainable.
Diversification Opportunities for CI Global and Middlefield Sustainable
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CINF and Middlefield is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Infrastructure and Middlefield Sustainable Infras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Middlefield Sustainable and CI Global 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 Global Infrastructure are associated (or correlated) with Middlefield Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Middlefield Sustainable has no effect on the direction of CI Global i.e., CI Global and Middlefield Sustainable go up and down completely randomly.
Pair Corralation between CI Global and Middlefield Sustainable
Assuming the 90 days trading horizon CI Global is expected to generate 1.69 times less return on investment than Middlefield Sustainable. But when comparing it to its historical volatility, CI Global Infrastructure is 1.35 times less risky than Middlefield Sustainable. It trades about 0.27 of its potential returns per unit of risk. Middlefield Sustainable Infrastructure is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 912.00 in Middlefield Sustainable Infrastructure on April 23, 2025 and sell it today you would earn a total of 107.00 from holding Middlefield Sustainable Infrastructure or generate 11.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CI Global Infrastructure vs. Middlefield Sustainable Infras
Performance |
Timeline |
CI Global Infrastructure |
Middlefield Sustainable |
CI Global and Middlefield Sustainable Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Global and Middlefield Sustainable
The main advantage of trading using opposite CI Global and Middlefield Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Middlefield Sustainable 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 Middlefield Sustainable will offset losses from the drop in Middlefield Sustainable's long position.CI Global vs. CI Global REIT | CI Global vs. CI Global Real | CI Global vs. CI Marret Alternative | CI Global vs. CI Global Financial |
Middlefield Sustainable vs. TD Active Global | Middlefield Sustainable vs. TD Active Global | Middlefield Sustainable vs. TD Active Enhanced | Middlefield Sustainable vs. TD Active Global |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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