Correlation Between Thomas White and Cibc Atlas
Can any of the company-specific risk be diversified away by investing in both Thomas White 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 Thomas White and Cibc Atlas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thomas White Emerging and Cibc Atlas International, you can compare the effects of market volatilities on Thomas White 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 Thomas White with a short position of Cibc Atlas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thomas White and Cibc Atlas.
Diversification Opportunities for Thomas White and Cibc Atlas
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thomas and Cibc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Thomas White Emerging 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 Thomas White 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 Thomas White Emerging 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 Thomas White i.e., Thomas White and Cibc Atlas go up and down completely randomly.
Pair Corralation between Thomas White and Cibc Atlas
Assuming the 90 days horizon Thomas White Emerging is expected to generate 1.06 times more return on investment than Cibc Atlas. However, Thomas White is 1.06 times more volatile than Cibc Atlas International. It trades about 0.31 of its potential returns per unit of risk. Cibc Atlas International is currently generating about 0.18 per unit of risk. If you would invest 1,016 in Thomas White Emerging on April 30, 2025 and sell it today you would earn a total of 160.00 from holding Thomas White Emerging or generate 15.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Thomas White Emerging vs. Cibc Atlas International
Performance |
Timeline |
Thomas White Emerging |
Cibc Atlas International |
Thomas White and Cibc Atlas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thomas White and Cibc Atlas
The main advantage of trading using opposite Thomas White and Cibc Atlas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thomas White 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.Thomas White vs. American Funds Conservative | Thomas White vs. Victory Diversified Stock | Thomas White vs. Allianzgi Diversified Income | Thomas White vs. Global Diversified Income |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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