Correlation Between BMO Concentrated and Mawer Global
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By analyzing existing cross correlation between BMO Concentrated Global and Mawer Global Small, you can compare the effects of market volatilities on BMO Concentrated 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 BMO Concentrated with a short position of Mawer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Concentrated and Mawer Global.
Diversification Opportunities for BMO Concentrated and Mawer Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BMO and Mawer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BMO Concentrated Global 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 BMO Concentrated 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 BMO Concentrated Global 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 BMO Concentrated i.e., BMO Concentrated and Mawer Global go up and down completely randomly.
Pair Corralation between BMO Concentrated and Mawer Global
Assuming the 90 days trading horizon BMO Concentrated Global is expected to generate 0.85 times more return on investment than Mawer Global. However, BMO Concentrated Global is 1.17 times less risky than Mawer Global. It trades about 0.38 of its potential returns per unit of risk. Mawer Global Small is currently generating about 0.31 per unit of risk. If you would invest 1,801 in BMO Concentrated Global on November 3, 2024 and sell it today you would earn a total of 101.00 from holding BMO Concentrated Global or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Concentrated Global vs. Mawer Global Small
Performance |
| Timeline |
| BMO Concentrated Global |
| Mawer Global Small |
BMO Concentrated and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Concentrated and Mawer Global
The main advantage of trading using opposite BMO Concentrated and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Concentrated 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.| BMO Concentrated vs. Global Healthcare Income | BMO Concentrated vs. CI Global Alpha | BMO Concentrated vs. CI Global Alpha | BMO Concentrated vs. CDSPI Global Growth |
| Mawer Global vs. Global Healthcare Income | Mawer Global vs. CI Global Alpha | Mawer Global vs. CI Global Alpha | Mawer Global vs. CDSPI Global Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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