Correlation Between Mawer Equity and Mawer Canadien
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By analyzing existing cross correlation between Mawer Equity A and Mawer Canadien obligations, you can compare the effects of market volatilities on Mawer Equity and Mawer Canadien 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 Equity with a short position of Mawer Canadien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Equity and Mawer Canadien.
Diversification Opportunities for Mawer Equity and Mawer Canadien
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mawer and Mawer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Equity A and Mawer Canadien obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Canadien oblig and Mawer Equity 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 Equity A are associated (or correlated) with Mawer Canadien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Canadien oblig has no effect on the direction of Mawer Equity i.e., Mawer Equity and Mawer Canadien go up and down completely randomly.
Pair Corralation between Mawer Equity and Mawer Canadien
Assuming the 90 days trading horizon Mawer Equity A is expected to generate 1.6 times more return on investment than Mawer Canadien. However, Mawer Equity is 1.6 times more volatile than Mawer Canadien obligations. It trades about 0.15 of its potential returns per unit of risk. Mawer Canadien obligations is currently generating about 0.06 per unit of risk. If you would invest 8,070 in Mawer Equity A on September 1, 2024 and sell it today you would earn a total of 2,319 from holding Mawer Equity A or generate 28.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.54% |
| Values | Daily Returns |
Mawer Equity A vs. Mawer Canadien obligations
Performance |
| Timeline |
| Mawer Equity A |
| Mawer Canadien oblig |
Mawer Equity and Mawer Canadien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Equity and Mawer Canadien
The main advantage of trading using opposite Mawer Equity and Mawer Canadien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Equity position performs unexpectedly, Mawer Canadien 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 Canadien will offset losses from the drop in Mawer Canadien's long position.| Mawer Equity vs. BMO Aggregate Bond | Mawer Equity vs. iShares Canadian HYBrid | Mawer Equity vs. Brompton European Dividend | Mawer Equity vs. Solar Alliance Energy |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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