Correlation Between Bloom Select and Desjardins Melodia
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By analyzing existing cross correlation between Bloom Select Income and Desjardins Melodia Balanced, you can compare the effects of market volatilities on Bloom Select and Desjardins Melodia 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 Bloom Select with a short position of Desjardins Melodia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and Desjardins Melodia.
Diversification Opportunities for Bloom Select and Desjardins Melodia
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bloom and Desjardins is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and Desjardins Melodia Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desjardins Melodia and Bloom Select 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 Bloom Select Income are associated (or correlated) with Desjardins Melodia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desjardins Melodia has no effect on the direction of Bloom Select i.e., Bloom Select and Desjardins Melodia go up and down completely randomly.
Pair Corralation between Bloom Select and Desjardins Melodia
Assuming the 90 days trading horizon Bloom Select is expected to generate 1.22 times less return on investment than Desjardins Melodia. In addition to that, Bloom Select is 1.82 times more volatile than Desjardins Melodia Balanced. It trades about 0.02 of its total potential returns per unit of risk. Desjardins Melodia Balanced is currently generating about 0.05 per unit of volatility. If you would invest 1,203 in Desjardins Melodia Balanced on October 30, 2024 and sell it today you would earn a total of 154.00 from holding Desjardins Melodia Balanced or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
Bloom Select Income vs. Desjardins Melodia Balanced
Performance |
| Timeline |
| Bloom Select Income |
| Desjardins Melodia |
Bloom Select and Desjardins Melodia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and Desjardins Melodia
The main advantage of trading using opposite Bloom Select and Desjardins Melodia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, Desjardins Melodia 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 Desjardins Melodia will offset losses from the drop in Desjardins Melodia's long position.| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
| Desjardins Melodia vs. RBC Select Balanced | Desjardins Melodia vs. TD Comfort Balanced | Desjardins Melodia vs. Mawer Balanced |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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