Correlation Between Kua Investments and CI Financial

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

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

Diversification Opportunities for Kua Investments and CI Financial

-0.8

Correlation Coefficient

Kua Investments  CI Financial

Pay attention - limited upside

The 3 months correlation between Kua and CIX is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kua Investments and CI Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Financial Corp and Kua Investments 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 Kua Investments are associated (or correlated) with CI Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Financial Corp has no effect on the direction of Kua Investments i.e., Kua Investments and CI Financial go up and down completely randomly.

Pair Corralation between Kua Investments and CI Financial

Assuming the 90 days trading horizon Kua Investments is expected to under-perform the CI Financial. In addition to that, Kua Investments is 21.8 times more volatile than CI Financial Corp. It trades about -0.12 of its total potential returns per unit of risk. CI Financial Corp is currently generating about 0.22 per unit of volatility. If you would invest  3,113  in CI Financial Corp on April 21, 2025 and sell it today you would earn a total of  57.00  from holding CI Financial Corp or generate 1.83% return on investment over 90 days.

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

Kua Investments  vs.  CI Financial Corp

Kua Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kua Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CI Financial Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Financial Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kua Investments and CI Financial

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

The idea behind Kua Investments and CI Financial Corp 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.