Correlation Between Canadian Imperial and EKAR
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and EKAR 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 Canadian Imperial and EKAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and EKAR, you can compare the effects of market volatilities on Canadian Imperial and EKAR 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 Canadian Imperial with a short position of EKAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and EKAR.
Diversification Opportunities for Canadian Imperial and EKAR
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and EKAR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and EKAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EKAR and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with EKAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EKAR has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and EKAR go up and down completely randomly.
Pair Corralation between Canadian Imperial and EKAR
If you would invest (100.00) in EKAR on January 20, 2024 and sell it today you would earn a total of 100.00 from holding EKAR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Canadian Imperial Bank vs. EKAR
Performance |
| Timeline |
| Canadian Imperial Bank |
| EKAR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Imperial and EKAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and EKAR
The main advantage of trading using opposite Canadian Imperial and EKAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, EKAR 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 EKAR will offset losses from the drop in EKAR's long position.| Canadian Imperial vs. Slate Grocery REIT | Canadian Imperial vs. Fennec Pharmaceuticals | Canadian Imperial vs. Roots Corp | Canadian Imperial vs. Frontera Energy Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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