Correlation Between Guardian Directed and CI Global

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

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

Diversification Opportunities for Guardian Directed and CI Global

0.62

Correlation Coefficient

Guardian Directed  CI Global

Poor diversification

The 3 months correlation between Guardian and CGRA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Directed Equity and CI Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Real and Guardian Directed 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 Guardian Directed Equity 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 Real has no effect on the direction of Guardian Directed i.e., Guardian Directed and CI Global go up and down completely randomly.

Pair Corralation between Guardian Directed and CI Global

Assuming the 90 days trading horizon Guardian Directed is expected to generate 3.9 times less return on investment than CI Global. But when comparing it to its historical volatility, Guardian Directed Equity is 1.34 times less risky than CI Global. It trades about 0.06 of its potential returns per unit of risk. CI Global Real is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,136  in CI Global Real on April 22, 2025 and sell it today you would earn a total of  155.00  from holding CI Global Real or generate 7.26% return on investment over 90 days.

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

Guardian Directed Equity  vs.  CI Global Real

Guardian Directed Equity

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Directed Equity are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Guardian Directed is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

CI Global Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Real are ranked lower than 14 (%) 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 Guardian Directed and CI Global

The main advantage of trading using opposite Guardian Directed and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Directed 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 Guardian Directed Equity and CI Global Real 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.