Correlation Between Cibc Atlas and Pace Large

Can any of the company-specific risk be diversified away by investing in both Cibc Atlas and Pace Large 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 Cibc Atlas and Pace Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cibc Atlas All and Pace Large Growth, you can compare the effects of market volatilities on Cibc Atlas and Pace Large 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 Cibc Atlas with a short position of Pace Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibc Atlas and Pace Large.

Diversification Opportunities for Cibc Atlas and Pace Large

0.97

Correlation Coefficient

Cibc Atlas  Pace Large

Almost no diversification

The 3 months correlation between Cibc and Pace is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas All and Pace Large Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Large Growth and Cibc Atlas 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 Cibc Atlas All are associated (or correlated) with Pace Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Large Growth has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and Pace Large go up and down completely randomly.

Pair Corralation between Cibc Atlas and Pace Large

Assuming the 90 days horizon Cibc Atlas All is expected to generate 1.21 times more return on investment than Pace Large. However, Cibc Atlas is 1.21 times more volatile than Pace Large Growth. It trades about 0.25 of its potential returns per unit of risk. Pace Large Growth is currently generating about 0.28 per unit of risk. If you would invest  3,650  in Cibc Atlas All on April 30, 2025 and sell it today you would earn a total of  520.00  from holding Cibc Atlas All or generate 14.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Cibc Atlas All  vs.  Pace Large Growth

Cibc Atlas All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas All are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Cibc Atlas showed solid returns over the last few months and may actually be approaching a breakup point.

Pace Large Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pace Large Growth are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pace Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cibc Atlas and Pace Large

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

The idea behind Cibc Atlas All and Pace Large Growth 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.