Correlation Between RBC Select and Mawer Balanced
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By analyzing existing cross correlation between RBC Select Balanced and Mawer Balanced, you can compare the effects of market volatilities on RBC Select and Mawer Balanced 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 Select with a short position of Mawer Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Select and Mawer Balanced.
Diversification Opportunities for RBC Select and Mawer Balanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RBC and Mawer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding RBC Select Balanced and Mawer Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Balanced and RBC Select 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 Select Balanced are associated (or correlated) with Mawer Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Balanced has no effect on the direction of RBC Select i.e., RBC Select and Mawer Balanced go up and down completely randomly.
Pair Corralation between RBC Select and Mawer Balanced
Assuming the 90 days trading horizon RBC Select is expected to generate 1.13 times less return on investment than Mawer Balanced. In addition to that, RBC Select is 1.15 times more volatile than Mawer Balanced. It trades about 0.04 of its total potential returns per unit of risk. Mawer Balanced is currently generating about 0.05 per unit of volatility. If you would invest 3,617 in Mawer Balanced on October 25, 2024 and sell it today you would earn a total of 98.00 from holding Mawer Balanced or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Select Balanced vs. Mawer Balanced
Performance |
| Timeline |
| RBC Select Balanced |
| Mawer Balanced |
RBC Select and Mawer Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Select and Mawer Balanced
The main advantage of trading using opposite RBC Select and Mawer Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Select position performs unexpectedly, Mawer Balanced 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 Mawer Balanced will offset losses from the drop in Mawer Balanced's long position.| RBC Select vs. TD Index Fund | RBC Select vs. Bloom Select Income | RBC Select vs. RBC Canadian Equity | RBC Select vs. Citadel Income |
| Mawer Balanced vs. RBC Select Balanced | Mawer Balanced vs. TD Comfort Balanced | Mawer Balanced vs. Desjardins Melodia 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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