Correlation Between CI Financial and Alamos Gold

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

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

Diversification Opportunities for CI Financial and Alamos Gold

-0.61

Correlation Coefficient

CI Financial  Alamos Gold

Excellent diversification

The 3 months correlation between CIX and Alamos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and CI Financial 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 Financial Corp are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of CI Financial i.e., CI Financial and Alamos Gold go up and down completely randomly.

Pair Corralation between CI Financial and Alamos Gold

Assuming the 90 days trading horizon CI Financial Corp is expected to generate 0.05 times more return on investment than Alamos Gold. However, CI Financial Corp is 20.66 times less risky than Alamos Gold. It trades about 0.23 of its potential returns per unit of risk. Alamos Gold is currently generating about -0.08 per unit of risk. If you would invest  3,114  in CI Financial Corp on April 22, 2025 and sell it today you would earn a total of  59.00  from holding CI Financial Corp or generate 1.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

CI Financial Corp  vs.  Alamos Gold

CI Financial Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Financial Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Alamos Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alamos Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CI Financial and Alamos Gold

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

The idea behind CI Financial Corp and Alamos Gold 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.