Correlation Between CI Enhanced and Palantir Yield

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

By analyzing existing cross correlation between CI Enhanced Short and Palantir Yield Shares, you can compare the effects of market volatilities on CI Enhanced and Palantir Yield 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 Enhanced with a short position of Palantir Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and Palantir Yield.

Diversification Opportunities for CI Enhanced and Palantir Yield

0.88

Correlation Coefficient

CI Enhanced  Palantir Yield

Very poor diversification

The 3 months correlation between FSB and Palantir is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Short and Palantir Yield Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Yield Shares and CI Enhanced 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 Enhanced Short are associated (or correlated) with Palantir Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Yield Shares has no effect on the direction of CI Enhanced i.e., CI Enhanced and Palantir Yield go up and down completely randomly.

Pair Corralation between CI Enhanced and Palantir Yield

Assuming the 90 days trading horizon CI Enhanced is expected to generate 46.3 times less return on investment than Palantir Yield. But when comparing it to its historical volatility, CI Enhanced Short is 24.1 times less risky than Palantir Yield. It trades about 0.12 of its potential returns per unit of risk. Palantir Yield Shares is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,598  in Palantir Yield Shares on April 22, 2025 and sell it today you would earn a total of  1,000.00  from holding Palantir Yield Shares or generate 62.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

CI Enhanced Short  vs.  Palantir Yield Shares

CI Enhanced Short

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CI Enhanced Short are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, CI Enhanced is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Palantir Yield Shares

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Yield Shares are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Palantir Yield exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CI Enhanced and Palantir Yield

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

The idea behind CI Enhanced Short and Palantir Yield Shares 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.