Correlation Between BetaPro Canadian and RBC Short
Can any of the company-specific risk be diversified away by investing in both BetaPro Canadian and RBC Short 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 Canadian and RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Canadian Gold and RBC Short Term, you can compare the effects of market volatilities on BetaPro Canadian and RBC Short 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 Canadian with a short position of RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Canadian and RBC Short.
Diversification Opportunities for BetaPro Canadian and RBC Short
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BetaPro and RBC is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Canadian Gold and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term and BetaPro Canadian 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 Canadian Gold are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of BetaPro Canadian i.e., BetaPro Canadian and RBC Short go up and down completely randomly.
Pair Corralation between BetaPro Canadian and RBC Short
Assuming the 90 days trading horizon BetaPro Canadian Gold is expected to generate 10.68 times more return on investment than RBC Short. However, BetaPro Canadian is 10.68 times more volatile than RBC Short Term. It trades about 0.16 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.04 per unit of risk. If you would invest 9,270 in BetaPro Canadian Gold on November 19, 2025 and sell it today you would earn a total of 5,535 from holding BetaPro Canadian Gold or generate 59.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro Canadian Gold vs. RBC Short Term
Performance |
| Timeline |
| BetaPro Canadian Gold |
| RBC Short Term |
BetaPro Canadian and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Canadian and RBC Short
The main advantage of trading using opposite BetaPro Canadian and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Canadian position performs unexpectedly, RBC Short 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 Short will offset losses from the drop in RBC Short's long position.| BetaPro Canadian vs. BetaPro Silver 2x | BetaPro Canadian vs. BetaPro Canadian Gold | BetaPro Canadian vs. BetaPro SPTSX Capped | BetaPro Canadian vs. BetaPro SPTSX 60 |
| RBC Short vs. BMO Mid Term IG | RBC Short vs. iShares Canadian Short | RBC Short vs. Global X Canadian | RBC Short vs. NBI Sustainable Canadian |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |