Correlation Between Mawer Balanced and IShares Canadian
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By analyzing existing cross correlation between Mawer Balanced and iShares Canadian HYBrid, you can compare the effects of market volatilities on Mawer Balanced and IShares Canadian 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 Mawer Balanced with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Balanced and IShares Canadian.
Diversification Opportunities for Mawer Balanced and IShares Canadian
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mawer and IShares is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Balanced and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid and Mawer Balanced 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 Mawer Balanced are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Mawer Balanced i.e., Mawer Balanced and IShares Canadian go up and down completely randomly.
Pair Corralation between Mawer Balanced and IShares Canadian
Assuming the 90 days trading horizon Mawer Balanced is expected to generate 1.42 times more return on investment than IShares Canadian. However, Mawer Balanced is 1.42 times more volatile than iShares Canadian HYBrid. It trades about 0.11 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.15 per unit of risk. If you would invest 3,519 in Mawer Balanced on August 25, 2024 and sell it today you would earn a total of 182.00 from holding Mawer Balanced or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mawer Balanced vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Mawer Balanced |
| iShares Canadian HYBrid |
Mawer Balanced and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Balanced and IShares Canadian
The main advantage of trading using opposite Mawer Balanced and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Balanced position performs unexpectedly, IShares Canadian 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| Mawer Balanced vs. RBC Select Balanced | Mawer Balanced vs. TD Comfort Balanced | Mawer Balanced vs. BMO Aggregate Bond | Mawer Balanced vs. iShares Canadian HYBrid |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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