Correlation Between PHN Canadian and RBC Global
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By analyzing existing cross correlation between PHN Canadian Equity and RBC Global Equity, you can compare the effects of market volatilities on PHN Canadian and RBC 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 PHN Canadian with a short position of RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and RBC Global.
Diversification Opportunities for PHN Canadian and RBC Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and RBC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity and RBC Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Equity and PHN 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 PHN Canadian Equity are associated (or correlated) with RBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Equity has no effect on the direction of PHN Canadian i.e., PHN Canadian and RBC Global go up and down completely randomly.
Pair Corralation between PHN Canadian and RBC Global
Assuming the 90 days trading horizon PHN Canadian is expected to generate 1.18 times less return on investment than RBC Global. In addition to that, PHN Canadian is 1.01 times more volatile than RBC Global Equity. It trades about 0.1 of its total potential returns per unit of risk. RBC Global Equity is currently generating about 0.12 per unit of volatility. If you would invest 2,106 in RBC Global Equity on September 2, 2024 and sell it today you would earn a total of 695.00 from holding RBC Global Equity or generate 33.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHN Canadian Equity vs. RBC Global Equity
Performance |
| Timeline |
| PHN Canadian Equity |
| RBC Global Equity |
PHN Canadian and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and RBC Global
The main advantage of trading using opposite PHN Canadian and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian position performs unexpectedly, RBC 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 RBC Global will offset losses from the drop in RBC Global's long position.| PHN Canadian vs. BMO Concentrated Global | PHN Canadian vs. CI Global Resource | PHN Canadian vs. Fidelity Global Equity | PHN Canadian vs. CI Global Health |
| RBC Global vs. TD Comfort Balanced | RBC Global vs. Rbc North American | RBC Global vs. CI Signature Cat | RBC Global vs. RBC mondial dnergie |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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