Correlation Between Russell Investments and CI Global

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

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

Diversification Opportunities for Russell Investments and CI Global

0.82

Correlation Coefficient

Russell Investments  CI Global

Very poor diversification

The 3 months correlation between Russell and CINF is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Russell Investments Global and CI Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Infrastructure and Russell 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 Russell Investments Global 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 Infrastructure has no effect on the direction of Russell Investments i.e., Russell Investments and CI Global go up and down completely randomly.

Pair Corralation between Russell Investments and CI Global

Assuming the 90 days trading horizon Russell Investments is expected to generate 1.36 times less return on investment than CI Global. In addition to that, Russell Investments is 1.52 times more volatile than CI Global Infrastructure. It trades about 0.13 of its total potential returns per unit of risk. CI Global Infrastructure is currently generating about 0.27 per unit of volatility. If you would invest  2,742  in CI Global Infrastructure on April 23, 2025 and sell it today you would earn a total of  186.00  from holding CI Global Infrastructure or generate 6.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Russell Investments Global  vs.  CI Global Infrastructure

Russell Investments

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Russell Investments Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Russell Investments is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

CI Global Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Global Infrastructure are ranked lower than 21 (%) 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 Russell Investments and CI Global

The main advantage of trading using opposite Russell Investments and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Russell Investments 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 Russell Investments Global and CI Global Infrastructure 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.