Correlation Between Dynamic Active and RBC Discount
Can any of the company-specific risk be diversified away by investing in both Dynamic Active and RBC Discount 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 Dynamic Active and RBC Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynamic Active Ultra and RBC Discount Bond, you can compare the effects of market volatilities on Dynamic Active and RBC Discount 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 Dynamic Active with a short position of RBC Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Active and RBC Discount.
Diversification Opportunities for Dynamic Active and RBC Discount
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dynamic and RBC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Active Ultra and RBC Discount Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Discount Bond and Dynamic Active 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 Dynamic Active Ultra are associated (or correlated) with RBC Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Discount Bond has no effect on the direction of Dynamic Active i.e., Dynamic Active and RBC Discount go up and down completely randomly.
Pair Corralation between Dynamic Active and RBC Discount
Assuming the 90 days trading horizon Dynamic Active Ultra is expected to generate 0.33 times more return on investment than RBC Discount. However, Dynamic Active Ultra is 3.04 times less risky than RBC Discount. It trades about 0.1 of its potential returns per unit of risk. RBC Discount Bond is currently generating about -0.08 per unit of risk. If you would invest 1,961 in Dynamic Active Ultra on November 11, 2025 and sell it today you would earn a total of 14.00 from holding Dynamic Active Ultra or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynamic Active Ultra vs. RBC Discount Bond
Performance |
| Timeline |
| Dynamic Active Ultra |
| RBC Discount Bond |
Dynamic Active and RBC Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynamic Active and RBC Discount
The main advantage of trading using opposite Dynamic Active and RBC Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Active position performs unexpectedly, RBC Discount 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 Discount will offset losses from the drop in RBC Discount's long position.| Dynamic Active vs. iShares MSCI Europe | Dynamic Active vs. Vanguard Canadian Long Term | Dynamic Active vs. BetaPro Canadian Gold | Dynamic Active vs. Global X Equal |
| RBC Discount vs. RBC Target 2029 | RBC Discount vs. RBC Quant Dividend | RBC Discount vs. RBC Quant EAFE | RBC Discount vs. RBC Quant European |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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