Correlation Between Brompton Enhanced and RBC Short
Can any of the company-specific risk be diversified away by investing in both Brompton Enhanced and RBC Short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Brompton Enhanced and RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brompton Enhanced Multi Asset and RBC Short Term, you can compare the effects of market volatilities on Brompton Enhanced and RBC Short 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 Brompton Enhanced with a short position of RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton Enhanced and RBC Short.
Diversification Opportunities for Brompton Enhanced and RBC Short
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brompton and RBC is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Brompton Enhanced Multi Asset and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term and Brompton Enhanced 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 Brompton Enhanced Multi Asset are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of Brompton Enhanced i.e., Brompton Enhanced and RBC Short go up and down completely randomly.
Pair Corralation between Brompton Enhanced and RBC Short
Assuming the 90 days trading horizon Brompton Enhanced Multi Asset is expected to generate 1.15 times more return on investment than RBC Short. However, Brompton Enhanced is 1.15 times more volatile than RBC Short Term. It trades about 0.17 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.04 per unit of risk. If you would invest 1,400 in Brompton Enhanced Multi Asset on November 19, 2025 and sell it today you would earn a total of 97.00 from holding Brompton Enhanced Multi Asset or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brompton Enhanced Multi Asset vs. RBC Short Term
Performance |
| Timeline |
| Brompton Enhanced Multi |
| RBC Short Term |
Brompton Enhanced and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brompton Enhanced and RBC Short
The main advantage of trading using opposite Brompton Enhanced and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton Enhanced position performs unexpectedly, RBC Short 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 Short will offset losses from the drop in RBC Short's long position.| Brompton Enhanced vs. BMO Balanced ETF | Brompton Enhanced vs. Global X Canadian | Brompton Enhanced vs. Global X NASDAQ 100 | Brompton Enhanced vs. Vanguard FTSE Developed |
| RBC Short vs. BMO Mid Term IG | RBC Short vs. iShares Canadian Short | RBC Short vs. Global X Canadian | RBC Short vs. NBI Sustainable Canadian |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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