Correlation Between RBC Sciences and CI Signature
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By analyzing existing cross correlation between RBC sciences biologiques and CI Signature Cat, you can compare the effects of market volatilities on RBC Sciences and CI Signature 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 Sciences with a short position of CI Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Sciences and CI Signature.
Diversification Opportunities for RBC Sciences and CI Signature
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBC and 0P0001AAKP is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding RBC sciences biologiques and CI Signature Cat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Signature Cat and RBC Sciences 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 sciences biologiques are associated (or correlated) with CI Signature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Signature Cat has no effect on the direction of RBC Sciences i.e., RBC Sciences and CI Signature go up and down completely randomly.
Pair Corralation between RBC Sciences and CI Signature
Assuming the 90 days trading horizon RBC Sciences is expected to generate 3.3 times less return on investment than CI Signature. But when comparing it to its historical volatility, RBC sciences biologiques is 1.4 times less risky than CI Signature. It trades about 0.17 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 3,289 in CI Signature Cat on September 1, 2024 and sell it today you would earn a total of 386.00 from holding CI Signature Cat or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
RBC sciences biologiques vs. CI Signature Cat
Performance |
| Timeline |
| RBC sciences biologiques |
| CI Signature Cat |
RBC Sciences and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Sciences and CI Signature
The main advantage of trading using opposite RBC Sciences and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Sciences position performs unexpectedly, CI Signature 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 CI Signature will offset losses from the drop in CI Signature's long position.| RBC Sciences vs. BMO Aggregate Bond | RBC Sciences vs. iShares Canadian HYBrid | RBC Sciences vs. Brompton European Dividend | RBC Sciences vs. Solar Alliance Energy |
| CI Signature vs. Ninepoint Energy | CI Signature vs. Citadel Income | CI Signature vs. TD Dividend Growth | CI Signature vs. Canadian High Income |
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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