Correlation Between Mawer Equity and Mawer Global
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By analyzing existing cross correlation between Mawer Equity A and Mawer Global Equity, you can compare the effects of market volatilities on Mawer Equity and Mawer Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Equity and Mawer Global.
Diversification Opportunities for Mawer Equity and Mawer Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawer and Mawer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Equity A and Mawer Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Global Equity has no effect on the direction of Mawer Equity i.e., Mawer Equity and Mawer Global go up and down completely randomly.
Pair Corralation between Mawer Equity and Mawer Global
Assuming the 90 days trading horizon Mawer Equity A is expected to generate 1.12 times more return on investment than Mawer Global. However, Mawer Equity is 1.12 times more volatile than Mawer Global Equity. It trades about 0.14 of its potential returns per unit of risk. Mawer Global Equity is currently generating about 0.08 per unit of risk. If you would invest 8,435 in Mawer Equity A on September 4, 2024 and sell it today you would earn a total of 1,999 from holding Mawer Equity A or generate 23.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.41% |
| Values | Daily Returns |
Mawer Equity A vs. Mawer Global Equity
Performance |
| Timeline |
| Mawer Equity A |
| Mawer Global Equity |
Mawer Equity and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Equity and Mawer Global
The main advantage of trading using opposite Mawer Equity and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Equity position performs unexpectedly, Mawer Global 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 Global will offset losses from the drop in Mawer Global's long position.| Mawer Equity vs. Phillips, Hager North | Mawer Equity vs. TD Comfort Aggressive | Mawer Equity vs. Desjardins Sustainable Maximum | Mawer Equity vs. TD Monthly Income |
| Mawer Global vs. Mawer Canadien obligations | Mawer Global vs. Mawer Balanced | Mawer Global vs. Mawer dactions internationales | Mawer Global vs. Mawer Equity A |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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