Correlation Between Growth Portfolio and Cibc Atlas

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

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

Diversification Opportunities for Growth Portfolio and Cibc Atlas

0.95

Correlation Coefficient

Growth Portfolio  Cibc Atlas

Almost no diversification

The 3 months correlation between Growth and Cibc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Growth Portfolio Class 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 Growth Portfolio 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 Growth Portfolio Class 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 Growth Portfolio i.e., Growth Portfolio and Cibc Atlas go up and down completely randomly.

Pair Corralation between Growth Portfolio and Cibc Atlas

Assuming the 90 days horizon Growth Portfolio Class is expected to generate 2.16 times more return on investment than Cibc Atlas. However, Growth Portfolio is 2.16 times more volatile than Cibc Atlas International. It trades about 0.27 of its potential returns per unit of risk. Cibc Atlas International is currently generating about 0.17 per unit of risk. If you would invest  4,117  in Growth Portfolio Class on April 24, 2025 and sell it today you would earn a total of  1,084  from holding Growth Portfolio Class or generate 26.33% return on investment over 90 days.

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

Growth Portfolio Class  vs.  Cibc Atlas International

Growth Portfolio Class

Risk-Adjusted Performance

Solid

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

Cibc Atlas International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas International are ranked lower than 13 (%) 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 Growth Portfolio and Cibc Atlas

The main advantage of trading using opposite Growth Portfolio and Cibc Atlas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Portfolio 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 Growth Portfolio Class 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.