Correlation Between Global Crossing and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both Global Crossing 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 Global Crossing and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and Canadian Imperial Bank, you can compare the effects of market volatilities on Global Crossing 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 Global Crossing with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and Canadian Imperial.
Diversification Opportunities for Global Crossing and Canadian Imperial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Canadian is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines 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 Global Crossing 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 Global Crossing Airlines 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 Global Crossing i.e., Global Crossing and Canadian Imperial go up and down completely randomly.
Pair Corralation between Global Crossing and Canadian Imperial
Assuming the 90 days trading horizon Global Crossing Airlines is expected to generate 9.13 times more return on investment than Canadian Imperial. However, Global Crossing is 9.13 times more volatile than Canadian Imperial Bank. It trades about 0.01 of its potential returns per unit of risk. Canadian Imperial Bank is currently generating about 0.1 per unit of risk. If you would invest 91.00 in Global Crossing Airlines on September 6, 2025 and sell it today you would lose (1.00) from holding Global Crossing Airlines or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Crossing Airlines vs. Canadian Imperial Bank
Performance |
| Timeline |
| Global Crossing Airlines |
| Canadian Imperial Bank |
Global Crossing and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and Canadian Imperial
The main advantage of trading using opposite Global Crossing and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing 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.| Global Crossing vs. Cogeco Communications | Global Crossing vs. Arbor Metals Corp | Global Crossing vs. Metalero Mining Corp | Global Crossing vs. Ramp Metals |
| Canadian Imperial vs. Enbridge Pref 5 | Canadian Imperial vs. Enbridge Pref 11 | Canadian Imperial vs. Enbridge Pref L | Canadian Imperial vs. E Split 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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