Correlation Between CI Global and Purpose Cash

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

By analyzing existing cross correlation between CI Global Financial and Purpose Cash Management, you can compare the effects of market volatilities on CI Global and Purpose Cash 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 Purpose Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Purpose Cash.

Diversification Opportunities for CI Global and Purpose Cash

0.84

Correlation Coefficient

CI Global  Purpose Cash

Very poor diversification

The 3 months correlation between FSF and Purpose is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Financial and Purpose Cash Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purpose Cash Management 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 Financial are associated (or correlated) with Purpose Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purpose Cash Management has no effect on the direction of CI Global i.e., CI Global and Purpose Cash go up and down completely randomly.

Pair Corralation between CI Global and Purpose Cash

Assuming the 90 days trading horizon CI Global Financial is expected to generate 79.96 times more return on investment than Purpose Cash. However, CI Global is 79.96 times more volatile than Purpose Cash Management. It trades about 0.18 of its potential returns per unit of risk. Purpose Cash Management is currently generating about 0.99 per unit of risk. If you would invest  3,030  in CI Global Financial on April 23, 2025 and sell it today you would earn a total of  304.00  from holding CI Global Financial or generate 10.03% return on investment over 90 days.

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

CI Global Financial  vs.  Purpose Cash Management

CI Global Financial

Risk-Adjusted Performance

Solid

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

Purpose Cash Management

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Purpose Cash Management are ranked lower than 77 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Purpose Cash is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CI Global and Purpose Cash

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

The idea behind CI Global Financial and Purpose Cash Management 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.