Correlation Between CI Target and RBC Quant
Can any of the company-specific risk be diversified away by investing in both CI Target and RBC Quant 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 CI Target and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Target 2029 and RBC Quant EAFE, you can compare the effects of market volatilities on CI Target and RBC Quant 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 CI Target with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Target and RBC Quant.
Diversification Opportunities for CI Target and RBC Quant
Poor diversification
The 3 months correlation between CTMB and RBC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CI Target 2029 and RBC Quant EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant EAFE and CI Target 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 CI Target 2029 are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant EAFE has no effect on the direction of CI Target i.e., CI Target and RBC Quant go up and down completely randomly.
Pair Corralation between CI Target and RBC Quant
Assuming the 90 days trading horizon CI Target is expected to generate 10.11 times less return on investment than RBC Quant. But when comparing it to its historical volatility, CI Target 2029 is 7.59 times less risky than RBC Quant. It trades about 0.16 of its potential returns per unit of risk. RBC Quant EAFE is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,422 in RBC Quant EAFE on November 17, 2025 and sell it today you would earn a total of 383.00 from holding RBC Quant EAFE or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
CI Target 2029 vs. RBC Quant EAFE
Performance |
| Timeline |
| CI Target 2029 |
| RBC Quant EAFE |
CI Target and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Target and RBC Quant
The main advantage of trading using opposite CI Target and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Target position performs unexpectedly, RBC Quant 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 Quant will offset losses from the drop in RBC Quant's long position.| CI Target vs. iShares SPTSX 60 | CI Target vs. iShares Core SP | CI Target vs. iShares Core SPTSX | CI Target vs. BMO Aggregate Bond |
| RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard Conservative ETF |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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