Correlation Between RBC Global and PHN Canadian
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By analyzing existing cross correlation between RBC Global Technology and PHN Canadian Equity, you can compare the effects of market volatilities on RBC Global and PHN 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 RBC Global with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Global and PHN Canadian.
Diversification Opportunities for RBC Global and PHN Canadian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBC and PHN is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding RBC Global Technology and PHN Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Canadian Equity and RBC Global 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 Global Technology are associated (or correlated) with PHN Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Canadian Equity has no effect on the direction of RBC Global i.e., RBC Global and PHN Canadian go up and down completely randomly.
Pair Corralation between RBC Global and PHN Canadian
Assuming the 90 days trading horizon RBC Global Technology is expected to generate 2.07 times more return on investment than PHN Canadian. However, RBC Global is 2.07 times more volatile than PHN Canadian Equity. It trades about 0.08 of its potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.16 per unit of risk. If you would invest 1,453 in RBC Global Technology on September 1, 2024 and sell it today you would earn a total of 287.00 from holding RBC Global Technology or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Global Technology vs. PHN Canadian Equity
Performance |
| Timeline |
| RBC Global Technology |
| PHN Canadian Equity |
RBC Global and PHN Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Global and PHN Canadian
The main advantage of trading using opposite RBC Global and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Global position performs unexpectedly, PHN 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 PHN Canadian will offset losses from the drop in PHN Canadian's long position.| RBC Global vs. CI Signature Cat | RBC Global vs. Fidelity Technology Innovators | RBC Global vs. CI Global Health |
| PHN Canadian vs. Fidelity Tactical High | PHN Canadian vs. Global Healthcare Income | PHN Canadian vs. CI Global Alpha | PHN Canadian vs. CI Global Alpha |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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