Correlation Between Cenovus Energy and Multi-index 2045
Can any of the company-specific risk be diversified away by investing in both Cenovus Energy and Multi-index 2045 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 Cenovus Energy and Multi-index 2045 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cenovus Energy and Multi Index 2045 Lifetime, you can compare the effects of market volatilities on Cenovus Energy and Multi-index 2045 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 Cenovus Energy with a short position of Multi-index 2045. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenovus Energy and Multi-index 2045.
Diversification Opportunities for Cenovus Energy and Multi-index 2045
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cenovus and Multi-index is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cenovus Energy and Multi Index 2045 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2045 and Cenovus Energy 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 Cenovus Energy are associated (or correlated) with Multi-index 2045. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2045 has no effect on the direction of Cenovus Energy i.e., Cenovus Energy and Multi-index 2045 go up and down completely randomly.
Pair Corralation between Cenovus Energy and Multi-index 2045
Considering the 90-day investment horizon Cenovus Energy is expected to generate 4.13 times more return on investment than Multi-index 2045. However, Cenovus Energy is 4.13 times more volatile than Multi Index 2045 Lifetime. It trades about 0.24 of its potential returns per unit of risk. Multi Index 2045 Lifetime is currently generating about 0.22 per unit of risk. If you would invest 1,485 in Cenovus Energy on June 7, 2025 and sell it today you would earn a total of 163.00 from holding Cenovus Energy or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cenovus Energy vs. Multi Index 2045 Lifetime
Performance |
| Timeline |
| Cenovus Energy |
| Multi Index 2045 |
Cenovus Energy and Multi-index 2045 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cenovus Energy and Multi-index 2045
The main advantage of trading using opposite Cenovus Energy and Multi-index 2045 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cenovus Energy position performs unexpectedly, Multi-index 2045 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 Multi-index 2045 will offset losses from the drop in Multi-index 2045's long position.| Cenovus Energy vs. Imperial Oil | Cenovus Energy vs. Exxon Mobil Corp | Cenovus Energy vs. Chevron Corp | Cenovus Energy vs. BP PLC ADR |
| Multi-index 2045 vs. Regional Bank Fund | Multi-index 2045 vs. Regional Bank Fund | Multi-index 2045 vs. Multimanager Lifestyle Moderate | Multi-index 2045 vs. Multimanager Lifestyle Balanced |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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