Correlation Between CI Canada and BetaPro SPTSX
Can any of the company-specific risk be diversified away by investing in both CI Canada and BetaPro SPTSX 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 Canada and BetaPro SPTSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canada Quality and BetaPro SPTSX 60, you can compare the effects of market volatilities on CI Canada and BetaPro SPTSX 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 Canada with a short position of BetaPro SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canada and BetaPro SPTSX.
Diversification Opportunities for CI Canada and BetaPro SPTSX
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DGRC and BetaPro is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding CI Canada Quality and BetaPro SPTSX 60 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SPTSX 60 and CI Canada 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 Canada Quality are associated (or correlated) with BetaPro SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SPTSX 60 has no effect on the direction of CI Canada i.e., CI Canada and BetaPro SPTSX go up and down completely randomly.
Pair Corralation between CI Canada and BetaPro SPTSX
Assuming the 90 days trading horizon CI Canada Quality is expected to generate 0.67 times more return on investment than BetaPro SPTSX. However, CI Canada Quality is 1.49 times less risky than BetaPro SPTSX. It trades about 0.19 of its potential returns per unit of risk. BetaPro SPTSX 60 is currently generating about -0.14 per unit of risk. If you would invest 4,160 in CI Canada Quality on April 3, 2025 and sell it today you would earn a total of 87.00 from holding CI Canada Quality or generate 2.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CI Canada Quality vs. BetaPro SPTSX 60
Performance |
Timeline |
CI Canada Quality |
BetaPro SPTSX 60 |
CI Canada and BetaPro SPTSX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Canada and BetaPro SPTSX
The main advantage of trading using opposite CI Canada and BetaPro SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canada position performs unexpectedly, BetaPro SPTSX 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 BetaPro SPTSX will offset losses from the drop in BetaPro SPTSX's long position.CI Canada vs. NBI High Yield | CI Canada vs. NBI Unconstrained Fixed | CI Canada vs. Mackenzie Developed ex North | CI Canada vs. BMO Short Term Bond |
BetaPro SPTSX vs. BetaPro Equal Weight | BetaPro SPTSX vs. BetaPro Gold Bullion | BetaPro SPTSX vs. BetaPro SP 500 | BetaPro SPTSX vs. BetaPro SP 500 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |