Correlation Between Allergan Plc and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both Allergan Plc and Canadian Imperial 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 Allergan Plc and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allergan Plc and Canadian Imperial Bank, you can compare the effects of market volatilities on Allergan Plc and Canadian Imperial 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 Allergan Plc with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allergan Plc and Canadian Imperial.
Diversification Opportunities for Allergan Plc and Canadian Imperial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allergan and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allergan Plc and Canadian Imperial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank and Allergan Plc 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 Allergan Plc are associated (or correlated) with Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of Allergan Plc i.e., Allergan Plc and Canadian Imperial go up and down completely randomly.
Pair Corralation between Allergan Plc and Canadian Imperial
If you would invest 4,517 in Canadian Imperial Bank on January 26, 2024 and sell it today you would earn a total of 237.00 from holding Canadian Imperial Bank or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Allergan Plc vs. Canadian Imperial Bank
Performance |
| Timeline |
| Allergan Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canadian Imperial Bank |
Allergan Plc and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allergan Plc and Canadian Imperial
The main advantage of trading using opposite Allergan Plc and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allergan Plc position performs unexpectedly, Canadian Imperial 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 Canadian Imperial will offset losses from the drop in Canadian Imperial's long position.| Allergan Plc vs. Bank of America | Allergan Plc vs. SFL Corporation | Allergan Plc vs. PennantPark Investment | Allergan Plc vs. Enersys |
| Canadian Imperial vs. Bank of Montreal | Canadian Imperial vs. Toronto Dominion Bank | Canadian Imperial vs. Royal Bank of | Canadian Imperial vs. Citigroup |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |