Correlation Between RBC Select and Edgepoint Cdn
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By analyzing existing cross correlation between RBC Select Balanced and Edgepoint Cdn Growth, you can compare the effects of market volatilities on RBC Select and Edgepoint Cdn 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 Edgepoint Cdn. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Select and Edgepoint Cdn.
Diversification Opportunities for RBC Select and Edgepoint Cdn
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBC and Edgepoint is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding RBC Select Balanced and Edgepoint Cdn Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Cdn Growth 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 Edgepoint Cdn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Cdn Growth has no effect on the direction of RBC Select i.e., RBC Select and Edgepoint Cdn go up and down completely randomly.
Pair Corralation between RBC Select and Edgepoint Cdn
Assuming the 90 days trading horizon RBC Select is expected to generate 1.36 times less return on investment than Edgepoint Cdn. But when comparing it to its historical volatility, RBC Select Balanced is 1.13 times less risky than Edgepoint Cdn. It trades about 0.07 of its potential returns per unit of risk. Edgepoint Cdn Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,603 in Edgepoint Cdn Growth on August 26, 2024 and sell it today you would earn a total of 569.00 from holding Edgepoint Cdn Growth or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.59% |
| Values | Daily Returns |
RBC Select Balanced vs. Edgepoint Cdn Growth
Performance |
| Timeline |
| RBC Select Balanced |
| Edgepoint Cdn Growth |
RBC Select and Edgepoint Cdn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Select and Edgepoint Cdn
The main advantage of trading using opposite RBC Select and Edgepoint Cdn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Select position performs unexpectedly, Edgepoint Cdn 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 Edgepoint Cdn will offset losses from the drop in Edgepoint Cdn's long position.| RBC Select vs. TD Comfort Balanced | RBC Select vs. Mawer Balanced | RBC Select vs. BMO Aggregate Bond | RBC Select vs. iShares Canadian HYBrid |
| Edgepoint Cdn vs. RBC Select Balanced | Edgepoint Cdn vs. RBC Portefeuille de | Edgepoint Cdn vs. TD Comfort Balanced | Edgepoint Cdn vs. RBC Global Equity |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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