Correlation Between BetaPro SPTSX and RBC Quant
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX 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 BetaPro SPTSX and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SPTSX Capped and RBC Quant European, you can compare the effects of market volatilities on BetaPro SPTSX 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 BetaPro SPTSX with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and RBC Quant.
Diversification Opportunities for BetaPro SPTSX and RBC Quant
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BetaPro and RBC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX Capped and RBC Quant European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant European and BetaPro SPTSX 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 BetaPro SPTSX Capped 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 European has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and RBC Quant go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and RBC Quant
Assuming the 90 days trading horizon BetaPro SPTSX Capped is expected to under-perform the RBC Quant. In addition to that, BetaPro SPTSX is 4.06 times more volatile than RBC Quant European. It trades about -0.18 of its total potential returns per unit of risk. RBC Quant European is currently generating about 0.26 per unit of volatility. If you would invest 3,214 in RBC Quant European on October 31, 2025 and sell it today you would earn a total of 356.00 from holding RBC Quant European or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SPTSX Capped vs. RBC Quant European
Performance |
| Timeline |
| BetaPro SPTSX Capped |
| RBC Quant European |
BetaPro SPTSX and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and RBC Quant
The main advantage of trading using opposite BetaPro SPTSX and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX 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.The idea behind BetaPro SPTSX Capped and RBC Quant European pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| RBC Quant vs. Brompton European Dividend | RBC Quant vs. Mackenzie International Equity | RBC Quant vs. RBC Quant European | RBC Quant vs. iShares MSCI Min |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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