Correlation Between Lumen Technologies and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both Lumen Technologies 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 Lumen Technologies and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumen Technologies and Canadian Imperial Bank, you can compare the effects of market volatilities on Lumen Technologies 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 Lumen Technologies with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and Canadian Imperial.
Diversification Opportunities for Lumen Technologies and Canadian Imperial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumen and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies 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 Lumen Technologies 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 Lumen Technologies 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 Lumen Technologies i.e., Lumen Technologies and Canadian Imperial go up and down completely randomly.
Pair Corralation between Lumen Technologies and Canadian Imperial
If you would invest 5,328 in Canadian Imperial Bank on January 26, 2024 and sell it today you would earn a total of 1,188 from holding Canadian Imperial Bank or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lumen Technologies vs. Canadian Imperial Bank
Performance |
| Timeline |
| Lumen Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canadian Imperial Bank |
Lumen Technologies and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and Canadian Imperial
The main advantage of trading using opposite Lumen Technologies and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies 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.| Lumen Technologies vs. Eldorado Gold Corp | Lumen Technologies vs. SFL Corporation | Lumen Technologies vs. Avarone Metals | Lumen Technologies vs. Willscot Mobile Mini |
| Canadian Imperial vs. Element Fleet Management | Canadian Imperial vs. Martinrea International | Canadian Imperial vs. Mullen Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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