Correlation Between BetaPro SP and Mackenzie Floating
Can any of the company-specific risk be diversified away by investing in both BetaPro SP and Mackenzie Floating 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 SP and Mackenzie Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SP 500 and Mackenzie Floating Rate, you can compare the effects of market volatilities on BetaPro SP and Mackenzie Floating 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 SP with a short position of Mackenzie Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and Mackenzie Floating.
Diversification Opportunities for BetaPro SP and Mackenzie Floating
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between BetaPro and Mackenzie is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 and Mackenzie Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Floating Rate and BetaPro SP 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 SP 500 are associated (or correlated) with Mackenzie Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Floating Rate has no effect on the direction of BetaPro SP i.e., BetaPro SP and Mackenzie Floating go up and down completely randomly.
Pair Corralation between BetaPro SP and Mackenzie Floating
Assuming the 90 days trading horizon BetaPro SP 500 is expected to generate 6.97 times more return on investment than Mackenzie Floating. However, BetaPro SP is 6.97 times more volatile than Mackenzie Floating Rate. It trades about 0.24 of its potential returns per unit of risk. Mackenzie Floating Rate is currently generating about 0.15 per unit of risk. If you would invest 1,075 in BetaPro SP 500 on December 1, 2024 and sell it today you would earn a total of 36.00 from holding BetaPro SP 500 or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SP 500 vs. Mackenzie Floating Rate
Performance |
| Timeline |
| BetaPro SP 500 |
| Mackenzie Floating Rate |
BetaPro SP and Mackenzie Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SP and Mackenzie Floating
The main advantage of trading using opposite BetaPro SP and Mackenzie Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP position performs unexpectedly, Mackenzie Floating 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 Mackenzie Floating will offset losses from the drop in Mackenzie Floating's long position.| BetaPro SP vs. BetaPro SPTSX 60 | BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro Gold Bullion |
| Mackenzie Floating vs. Mackenzie Developed ex North | Mackenzie Floating vs. Mackenzie Global Sustainable | Mackenzie Floating vs. Mackenzie Aggregate Bond | Mackenzie Floating vs. Mackenzie Canadian Ultra |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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