Correlation Between Mackenzie Unconstrained and CIBC Flexible

Can any of the company-specific risk be diversified away by investing in both Mackenzie Unconstrained and CIBC Flexible 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 Mackenzie Unconstrained and CIBC Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mackenzie Unconstrained Bond and CIBC Flexible Yield, you can compare the effects of market volatilities on Mackenzie Unconstrained and CIBC Flexible 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 Mackenzie Unconstrained with a short position of CIBC Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Unconstrained and CIBC Flexible.

Diversification Opportunities for Mackenzie Unconstrained and CIBC Flexible

0.95

Correlation Coefficient

Mackenzie Unconstrained  CIBC Flexible

Almost no diversification

The 3 months correlation between Mackenzie and CIBC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Unconstrained Bond and CIBC Flexible Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Flexible Yield and Mackenzie Unconstrained 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 Mackenzie Unconstrained Bond are associated (or correlated) with CIBC Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Flexible Yield has no effect on the direction of Mackenzie Unconstrained i.e., Mackenzie Unconstrained and CIBC Flexible go up and down completely randomly.

Pair Corralation between Mackenzie Unconstrained and CIBC Flexible

Assuming the 90 days trading horizon Mackenzie Unconstrained Bond is expected to generate 1.62 times more return on investment than CIBC Flexible. However, Mackenzie Unconstrained is 1.62 times more volatile than CIBC Flexible Yield. It trades about 0.2 of its potential returns per unit of risk. CIBC Flexible Yield is currently generating about 0.2 per unit of risk. If you would invest  1,771  in Mackenzie Unconstrained Bond on April 20, 2025 and sell it today you would earn a total of  50.00  from holding Mackenzie Unconstrained Bond or generate 2.82% return on investment over 90 days.

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

Mackenzie Unconstrained Bond  vs.  CIBC Flexible Yield

Mackenzie Unconstrained

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie Unconstrained Bond are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, Mackenzie Unconstrained is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

CIBC Flexible Yield

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CIBC Flexible Yield are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CIBC Flexible is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mackenzie Unconstrained and CIBC Flexible

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

The idea behind Mackenzie Unconstrained Bond and CIBC Flexible Yield 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.