Correlation Between RBC Canadian and Altagas Cum
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By analyzing existing cross correlation between RBC Canadian Equity and Altagas Cum Red, you can compare the effects of market volatilities on RBC Canadian and Altagas Cum 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 Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Canadian and Altagas Cum.
Diversification Opportunities for RBC Canadian and Altagas Cum
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RBC and Altagas is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding RBC Canadian Equity and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red 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 Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of RBC Canadian i.e., RBC Canadian and Altagas Cum go up and down completely randomly.
Pair Corralation between RBC Canadian and Altagas Cum
Assuming the 90 days trading horizon RBC Canadian is expected to generate 5.3 times less return on investment than Altagas Cum. But when comparing it to its historical volatility, RBC Canadian Equity is 1.47 times less risky than Altagas Cum. It trades about 0.14 of its potential returns per unit of risk. Altagas Cum Red is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 2,005 in Altagas Cum Red on November 2, 2024 and sell it today you would earn a total of 158.00 from holding Altagas Cum Red or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
RBC Canadian Equity vs. Altagas Cum Red
Performance |
| Timeline |
| RBC Canadian Equity |
| Altagas Cum Red |
RBC Canadian and Altagas Cum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Canadian and Altagas Cum
The main advantage of trading using opposite RBC Canadian and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Canadian position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.| RBC Canadian vs. TD Dividend Growth | RBC Canadian vs. BMO Aggregate Bond | RBC Canadian vs. iShares Canadian HYBrid | RBC Canadian vs. Brompton European Dividend |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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