Correlation Between Cm Commodity and Rbc Emerging
Can any of the company-specific risk be diversified away by investing in both Cm Commodity and Rbc Emerging 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 Cm Commodity and Rbc Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cm Modity Index and Rbc Emerging Markets, you can compare the effects of market volatilities on Cm Commodity and Rbc Emerging 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 Cm Commodity with a short position of Rbc Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cm Commodity and Rbc Emerging.
Diversification Opportunities for Cm Commodity and Rbc Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COMIX and Rbc is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Cm Modity Index and Rbc Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Emerging Markets and Cm Commodity 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 Cm Modity Index are associated (or correlated) with Rbc Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Emerging Markets has no effect on the direction of Cm Commodity i.e., Cm Commodity and Rbc Emerging go up and down completely randomly.
Pair Corralation between Cm Commodity and Rbc Emerging
Assuming the 90 days horizon Cm Commodity is expected to generate 3.28 times less return on investment than Rbc Emerging. In addition to that, Cm Commodity is 1.07 times more volatile than Rbc Emerging Markets. It trades about 0.11 of its total potential returns per unit of risk. Rbc Emerging Markets is currently generating about 0.38 per unit of volatility. If you would invest 1,088 in Rbc Emerging Markets on November 15, 2025 and sell it today you would earn a total of 207.00 from holding Rbc Emerging Markets or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Cm Modity Index vs. Rbc Emerging Markets
Performance |
| Timeline |
| Cm Modity Index |
| Rbc Emerging Markets |
Cm Commodity and Rbc Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cm Commodity and Rbc Emerging
The main advantage of trading using opposite Cm Commodity and Rbc Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cm Commodity position performs unexpectedly, Rbc Emerging 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 Emerging will offset losses from the drop in Rbc Emerging's long position.| Cm Commodity vs. Fidelity Sai Convertible | Cm Commodity vs. The Lazard Funds | Cm Commodity vs. Invesco Vertible Securities | Cm Commodity vs. Rationalpier 88 Convertible |
| Rbc Emerging vs. Ancorathelen Small Mid Cap | Rbc Emerging vs. The Hartford Small | Rbc Emerging vs. Tax Managed Mid Small | Rbc Emerging vs. Copeland International Small |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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