Correlation Between BMO Concentrated and Edgepoint Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between BMO Concentrated Global and Edgepoint Global Portfolio, you can compare the effects of market volatilities on BMO Concentrated and Edgepoint 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 Edgepoint Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Concentrated and Edgepoint Global.
Diversification Opportunities for BMO Concentrated and Edgepoint Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BMO and Edgepoint is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BMO Concentrated Global and Edgepoint Global Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Global Por 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 Edgepoint Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Global Por has no effect on the direction of BMO Concentrated i.e., BMO Concentrated and Edgepoint Global go up and down completely randomly.
Pair Corralation between BMO Concentrated and Edgepoint Global
Assuming the 90 days trading horizon BMO Concentrated Global is expected to generate 0.89 times more return on investment than Edgepoint Global. However, BMO Concentrated Global is 1.12 times less risky than Edgepoint Global. It trades about 0.1 of its potential returns per unit of risk. Edgepoint Global Portfolio is currently generating about 0.07 per unit of risk. If you would invest 1,519 in BMO Concentrated Global on August 31, 2024 and sell it today you would earn a total of 354.00 from holding BMO Concentrated Global or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
BMO Concentrated Global vs. Edgepoint Global Portfolio
Performance |
| Timeline |
| BMO Concentrated Global |
| Edgepoint Global Por |
BMO Concentrated and Edgepoint Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Concentrated and Edgepoint Global
The main advantage of trading using opposite BMO Concentrated and Edgepoint Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Concentrated position performs unexpectedly, Edgepoint 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 Edgepoint Global will offset losses from the drop in Edgepoint Global's long position.The idea behind BMO Concentrated Global and Edgepoint Global Portfolio 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.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |