Correlation Between Brompton European and Mawer Global
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By analyzing existing cross correlation between Brompton European Dividend and Mawer Global Small, you can compare the effects of market volatilities on Brompton European and Mawer Global 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 European with a short position of Mawer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton European and Mawer Global.
Diversification Opportunities for Brompton European and Mawer Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brompton and Mawer is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Brompton European Dividend and Mawer Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Global Small and Brompton European 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 European Dividend are associated (or correlated) with Mawer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Global Small has no effect on the direction of Brompton European i.e., Brompton European and Mawer Global go up and down completely randomly.
Pair Corralation between Brompton European and Mawer Global
Assuming the 90 days trading horizon Brompton European Dividend is expected to generate 1.81 times more return on investment than Mawer Global. However, Brompton European is 1.81 times more volatile than Mawer Global Small. It trades about -0.03 of its potential returns per unit of risk. Mawer Global Small is currently generating about -0.09 per unit of risk. If you would invest 1,068 in Brompton European Dividend on August 29, 2024 and sell it today you would lose (15.00) from holding Brompton European Dividend or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brompton European Dividend vs. Mawer Global Small
Performance |
| Timeline |
| Brompton European |
| Mawer Global Small |
Brompton European and Mawer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brompton European and Mawer Global
The main advantage of trading using opposite Brompton European and Mawer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton European position performs unexpectedly, Mawer Global 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 Mawer Global will offset losses from the drop in Mawer Global's long position.| Brompton European vs. iShares SPTSX 60 | Brompton European vs. iShares Core SP | Brompton European vs. iShares Core SPTSX | Brompton European vs. BMO Aggregate Bond |
| Mawer Global vs. BMO Aggregate Bond | Mawer Global vs. iShares Canadian HYBrid | Mawer Global vs. Brompton European Dividend | Mawer Global vs. Solar Alliance Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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