Correlation Between Mawer Canadien and Mawer Global
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By analyzing existing cross correlation between Mawer Canadien obligations and Mawer Global Equity, you can compare the effects of market volatilities on Mawer Canadien 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 Canadien with a short position of Mawer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Canadien and Mawer Global.
Diversification Opportunities for Mawer Canadien and Mawer Global
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mawer and Mawer is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Canadien obligations 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 Canadien 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 Canadien obligations 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 Canadien i.e., Mawer Canadien and Mawer Global go up and down completely randomly.
Pair Corralation between Mawer Canadien and Mawer Global
Assuming the 90 days trading horizon Mawer Canadien is expected to generate 1.64 times less return on investment than Mawer Global. But when comparing it to its historical volatility, Mawer Canadien obligations is 1.71 times less risky than Mawer Global. It trades about 0.07 of its potential returns per unit of risk. Mawer Global Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,715 in Mawer Global Equity on September 3, 2024 and sell it today you would earn a total of 227.00 from holding Mawer Global Equity or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
Mawer Canadien obligations vs. Mawer Global Equity
Performance |
| Timeline |
| Mawer Canadien oblig |
| Mawer Global Equity |
Mawer Canadien and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Canadien and Mawer Global
The main advantage of trading using opposite Mawer Canadien and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Canadien 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 Canadien vs. BMO Aggregate Bond | Mawer Canadien vs. iShares Canadian HYBrid | Mawer Canadien vs. Brompton European Dividend | Mawer Canadien vs. Solar Alliance Energy |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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