Correlation Between CI Financial and Northern Trust
Can any of the company-specific risk be diversified away by investing in both CI Financial and Northern Trust 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 CI Financial and Northern Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Financial Corp and Northern Trust, you can compare the effects of market volatilities on CI Financial and Northern Trust 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 CI Financial with a short position of Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Financial and Northern Trust.
Diversification Opportunities for CI Financial and Northern Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIFAF and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CI Financial Corp and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Trust and CI Financial 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 CI Financial Corp are associated (or correlated) with Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of CI Financial i.e., CI Financial and Northern Trust go up and down completely randomly.
Pair Corralation between CI Financial and Northern Trust
If you would invest (100.00) in Northern Trust on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Northern Trust 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 |
CI Financial Corp vs. Northern Trust
Performance |
| Timeline |
| CI Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northern Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CI Financial and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Financial and Northern Trust
The main advantage of trading using opposite CI Financial and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Financial position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust's long position.| CI Financial vs. Alaska Air Group | CI Financial vs. Dana Inc | CI Financial vs. Guangzhou Automobile Group | CI Financial vs. FDG Electric Vehicles |
| Northern Trust vs. Visteon Corp | Northern Trust vs. Gentex | Northern Trust vs. Lifevantage | Northern Trust vs. Tesla Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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