Correlation Between Dynamic Active and CI Global

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

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

Diversification Opportunities for Dynamic Active and CI Global

0.9

Correlation Coefficient

Dynamic Active  CI Global

Almost no diversification

The 3 months correlation between Dynamic and CINF is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Active Global and CI Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Infrastructure and Dynamic Active 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 Dynamic Active Global are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Infrastructure has no effect on the direction of Dynamic Active i.e., Dynamic Active and CI Global go up and down completely randomly.

Pair Corralation between Dynamic Active and CI Global

Assuming the 90 days trading horizon Dynamic Active is expected to generate 1.0 times less return on investment than CI Global. In addition to that, Dynamic Active is 1.51 times more volatile than CI Global Infrastructure. It trades about 0.18 of its total potential returns per unit of risk. CI Global Infrastructure is currently generating about 0.27 per unit of volatility. If you would invest  2,742  in CI Global Infrastructure on April 23, 2025 and sell it today you would earn a total of  186.00  from holding CI Global Infrastructure or generate 6.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Dynamic Active Global  vs.  CI Global Infrastructure

Dynamic Active Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dynamic Active Global are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dynamic Active may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CI Global Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Infrastructure are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Dynamic Active and CI Global

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

The idea behind Dynamic Active Global and CI Global Infrastructure 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.