Correlation Between Southwest Georgia and Canadian Imperial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Southwest Georgia 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 Southwest Georgia and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southwest Georgia Financial and Canadian Imperial Bank, you can compare the effects of market volatilities on Southwest Georgia 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 Southwest Georgia with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Georgia and Canadian Imperial.

Diversification Opportunities for Southwest Georgia and Canadian Imperial

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Southwest and Canadian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Georgia Financial 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 Southwest Georgia 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 Southwest Georgia Financial 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 Southwest Georgia i.e., Southwest Georgia and Canadian Imperial go up and down completely randomly.

Pair Corralation between Southwest Georgia and Canadian Imperial

If you would invest  4,108  in Canadian Imperial Bank on December 29, 2023 and sell it today you would earn a total of  899.00  from holding Canadian Imperial Bank or generate 21.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Southwest Georgia Financial  vs.  Canadian Imperial Bank

 Performance 
       Timeline  
Southwest Georgia 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Southwest Georgia Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Southwest Georgia is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Canadian Imperial Bank 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Imperial Bank are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Canadian Imperial is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Southwest Georgia and Canadian Imperial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Southwest Georgia and Canadian Imperial

The main advantage of trading using opposite Southwest Georgia and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Georgia 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.
The idea behind Southwest Georgia Financial and Canadian Imperial Bank 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.
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Bonds Directory
Find actively traded corporate debentures issued by US companies
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories