Correlation Between RBC Canadian and PHN Canadian
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By analyzing existing cross correlation between RBC Canadian Equity and PHN Canadian Equity, you can compare the effects of market volatilities on RBC Canadian 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 Canadian with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Canadian and PHN Canadian.
Diversification Opportunities for RBC Canadian and PHN Canadian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RBC and PHN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding RBC Canadian Equity 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 Canadian 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 Canadian Equity 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 Canadian i.e., RBC Canadian and PHN Canadian go up and down completely randomly.
Pair Corralation between RBC Canadian and PHN Canadian
Assuming the 90 days trading horizon RBC Canadian is expected to generate 1.82 times less return on investment than PHN Canadian. But when comparing it to its historical volatility, RBC Canadian Equity is 1.22 times less risky than PHN Canadian. It trades about 0.17 of its potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,237 in PHN Canadian Equity on September 15, 2024 and sell it today you would earn a total of 50.00 from holding PHN Canadian Equity or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Canadian Equity vs. PHN Canadian Equity
Performance |
| Timeline |
| RBC Canadian Equity |
| PHN Canadian Equity |
RBC Canadian and PHN Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Canadian and PHN Canadian
The main advantage of trading using opposite RBC Canadian and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Canadian 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 Canadian vs. CI Synergy American | RBC Canadian vs. PHN Canadian Equity | RBC Canadian vs. CI Global Alpha | RBC Canadian vs. TD Comfort Aggressive |
| PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid | PHN Canadian vs. Brompton European Dividend |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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