Correlation Between Global Iman and RBC Global
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By analyzing existing cross correlation between Global Iman Fund and RBC Global Equity, you can compare the effects of market volatilities on Global Iman 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 Global Iman with a short position of RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Iman and RBC Global.
Diversification Opportunities for Global Iman and RBC Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and RBC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Global Iman Fund 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 Global Iman 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 Global Iman Fund 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 Global Iman i.e., Global Iman and RBC Global go up and down completely randomly.
Pair Corralation between Global Iman and RBC Global
Assuming the 90 days trading horizon Global Iman Fund is expected to under-perform the RBC Global. In addition to that, Global Iman is 1.24 times more volatile than RBC Global Equity. It trades about -0.03 of its total potential returns per unit of risk. RBC Global Equity is currently generating about 0.16 per unit of volatility. If you would invest 2,717 in RBC Global Equity on August 30, 2024 and sell it today you would earn a total of 70.00 from holding RBC Global Equity or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Global Iman Fund vs. RBC Global Equity
Performance |
| Timeline |
| Global Iman Fund |
| RBC Global Equity |
Global Iman and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Iman and RBC Global
The main advantage of trading using opposite Global Iman and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Iman 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.| Global Iman vs. CI Signature Cat | Global Iman vs. TD Dividend Growth | Global Iman vs. IA Clarington Strategic | Global Iman vs. TD Comfort Balanced |
| RBC Global vs. CI Black Creek | RBC Global vs. TD Comfort Aggressive | RBC Global vs. BMO Concentrated Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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