Correlation Between RBC Canadian and RBC Global
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By analyzing existing cross correlation between RBC Canadian Equity and RBC Global Equity, you can compare the effects of market volatilities on RBC Canadian and RBC Global 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 RBC Canadian with a short position of RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Canadian and RBC Global.
Diversification Opportunities for RBC Canadian and RBC Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBC and RBC is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding RBC Canadian Equity and RBC Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Equity and RBC Canadian 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 RBC Canadian Equity are associated (or correlated) with RBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Equity has no effect on the direction of RBC Canadian i.e., RBC Canadian and RBC Global go up and down completely randomly.
Pair Corralation between RBC Canadian and RBC Global
Assuming the 90 days trading horizon RBC Canadian Equity is expected to generate 0.74 times more return on investment than RBC Global. However, RBC Canadian Equity is 1.35 times less risky than RBC Global. It trades about 0.25 of its potential returns per unit of risk. RBC Global Equity is currently generating about 0.17 per unit of risk. If you would invest 3,081 in RBC Canadian Equity on August 29, 2024 and sell it today you would earn a total of 95.00 from holding RBC Canadian Equity or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Canadian Equity vs. RBC Global Equity
Performance |
| Timeline |
| RBC Canadian Equity |
| RBC Global Equity |
RBC Canadian and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Canadian and RBC Global
The main advantage of trading using opposite RBC Canadian and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Canadian position performs unexpectedly, RBC Global 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 RBC Global will offset losses from the drop in RBC Global's long position.| RBC Canadian vs. Mawer Canadien actions | RBC Canadian vs. PHN Canadian Equity | RBC Canadian vs. BMO Aggregate Bond | RBC Canadian vs. iShares Canadian HYBrid |
| RBC Global vs. Tangerine Equity Growth | RBC Global vs. Manulife Global Equity | RBC Global vs. Fidelity Global Equity | RBC Global vs. Dynamic Global Fixed |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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