Correlation Between IShares Conservative and CI Enhanced

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

By analyzing existing cross correlation between iShares Conservative Short and CI Enhanced Short, you can compare the effects of market volatilities on IShares Conservative and CI Enhanced 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 IShares Conservative with a short position of CI Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Conservative and CI Enhanced.

Diversification Opportunities for IShares Conservative and CI Enhanced

0.0

Correlation Coefficient

IShares Conservative  CI Enhanced

Pay attention - limited upside

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

Pair Corralation between IShares Conservative and CI Enhanced

If you would invest (100.00) in CI Enhanced Short on August 26, 2025 and sell it today you would earn a total of  100.00  from holding CI Enhanced Short or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

iShares Conservative Short  vs.  CI Enhanced Short

iShares Conservative

Risk-Adjusted Performance

Fair

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

CI Enhanced Short

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CI Enhanced Short are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, CI Enhanced is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with IShares Conservative and CI Enhanced

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

The idea behind iShares Conservative Short and CI Enhanced Short 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.