Correlation Between RBC Global and Mawer Global
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By analyzing existing cross correlation between RBC Global Equity and Mawer Global Small, you can compare the effects of market volatilities on RBC Global and Mawer 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 RBC Global with a short position of Mawer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Global and Mawer Global.
Diversification Opportunities for RBC Global and Mawer Global
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between RBC and Mawer is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding RBC Global Equity and Mawer Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Global Small 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 Equity are associated (or correlated) with Mawer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Global Small has no effect on the direction of RBC Global i.e., RBC Global and Mawer Global go up and down completely randomly.
Pair Corralation between RBC Global and Mawer Global
Assuming the 90 days trading horizon RBC Global Equity is expected to generate 1.06 times more return on investment than Mawer Global. However, RBC Global is 1.06 times more volatile than Mawer Global Small. It trades about 0.33 of its potential returns per unit of risk. Mawer Global Small is currently generating about 0.07 per unit of risk. If you would invest 2,666 in RBC Global Equity on September 1, 2024 and sell it today you would earn a total of 136.00 from holding RBC Global Equity or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
RBC Global Equity vs. Mawer Global Small
Performance |
| Timeline |
| RBC Global Equity |
| Mawer Global Small |
RBC Global and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Global and Mawer Global
The main advantage of trading using opposite RBC Global and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Global position performs unexpectedly, Mawer 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 Mawer Global will offset losses from the drop in Mawer Global's long position.The idea behind RBC Global Equity and Mawer Global Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mawer Global vs. BMO Aggregate Bond | Mawer Global vs. iShares Canadian HYBrid | Mawer Global vs. Brompton European Dividend | Mawer Global vs. Solar Alliance Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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