Correlation Between Global Strategist and Cibc Atlas

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

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

Diversification Opportunities for Global Strategist and Cibc Atlas

0.94

Correlation Coefficient

Global Strategist  Cibc Atlas

Almost no diversification

The 3 months correlation between Global and Cibc is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Global Strategist Portfolio and Cibc Atlas International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas International and Global Strategist 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 Global Strategist Portfolio are associated (or correlated) with Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas International has no effect on the direction of Global Strategist i.e., Global Strategist and Cibc Atlas go up and down completely randomly.

Pair Corralation between Global Strategist and Cibc Atlas

Assuming the 90 days horizon Global Strategist Portfolio is expected to generate 0.56 times more return on investment than Cibc Atlas. However, Global Strategist Portfolio is 1.78 times less risky than Cibc Atlas. It trades about 0.39 of its potential returns per unit of risk. Cibc Atlas International is currently generating about 0.2 per unit of risk. If you would invest  1,779  in Global Strategist Portfolio on April 23, 2025 and sell it today you would earn a total of  175.00  from holding Global Strategist Portfolio or generate 9.84% return on investment over 90 days.

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

Global Strategist Portfolio  vs.  Cibc Atlas International

Global Strategist

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Global Strategist Portfolio are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Global Strategist may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cibc Atlas International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas International are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Cibc Atlas may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Global Strategist and Cibc Atlas

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

The idea behind Global Strategist Portfolio and Cibc Atlas International 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.