Correlation Between CIBC Premium and CIBC Sustainable

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

By analyzing existing cross correlation between CIBC Premium Cash and CIBC Sustainable Balanced, you can compare the effects of market volatilities on CIBC Premium and CIBC Sustainable 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 Premium with a short position of CIBC Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIBC Premium and CIBC Sustainable.

Diversification Opportunities for CIBC Premium and CIBC Sustainable

0.0

Correlation Coefficient

CIBC Premium  CIBC Sustainable

Pay attention - limited upside

The 3 months correlation between CIBC and CIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIBC Premium Cash and CIBC Sustainable Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Sustainable Balanced and CIBC Premium 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 Premium Cash are associated (or correlated) with CIBC Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Sustainable Balanced has no effect on the direction of CIBC Premium i.e., CIBC Premium and CIBC Sustainable go up and down completely randomly.

Pair Corralation between CIBC Premium and CIBC Sustainable

If you would invest  4,989  in CIBC Premium Cash on May 3, 2025 and sell it today you would earn a total of  14.00  from holding CIBC Premium Cash or generate 0.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	88.71%
Values	Daily Returns

CIBC Premium Cash  vs.  CIBC Sustainable Balanced

CIBC Premium Cash

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CIBC Premium Cash are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CIBC Premium is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

CIBC Sustainable Balanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIBC Sustainable Balanced has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CIBC Sustainable is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CIBC Premium and CIBC Sustainable

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

The idea behind CIBC Premium Cash and CIBC Sustainable Balanced 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.