Correlation Between CIBC Conservative and CIBC International

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

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

Diversification Opportunities for CIBC Conservative and CIBC International

0.0

Correlation Coefficient

CIBC Conservative  CIBC International

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 Conservative Fixed and CIBC International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC International Equity and CIBC Conservative 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 Conservative Fixed are associated (or correlated) with CIBC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC International Equity has no effect on the direction of CIBC Conservative i.e., CIBC Conservative and CIBC International go up and down completely randomly.

Pair Corralation between CIBC Conservative and CIBC International

If you would invest  1,796  in CIBC Conservative Fixed on May 27, 2025 and sell it today you would earn a total of  20.00  from holding CIBC Conservative Fixed or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CIBC Conservative Fixed  vs.  CIBC International Equity

CIBC Conservative Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CIBC Conservative Fixed are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CIBC Conservative is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CIBC International Equity

Risk-Adjusted Performance

Soft

Over the last 90 days CIBC International Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, CIBC International is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CIBC Conservative and CIBC International

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

The idea behind CIBC Conservative Fixed and CIBC International Equity 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.

Check out your portfolio center.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.