Correlation Between BetaPro Crude and RBC Quant
Can any of the company-specific risk be diversified away by investing in both BetaPro Crude 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 Crude 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 Crude Oil and RBC Quant European, you can compare the effects of market volatilities on BetaPro Crude 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 Crude with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Crude and RBC Quant.
Diversification Opportunities for BetaPro Crude and RBC Quant
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BetaPro and RBC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Crude Oil 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 Crude 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 Crude Oil 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 Crude i.e., BetaPro Crude and RBC Quant go up and down completely randomly.
Pair Corralation between BetaPro Crude and RBC Quant
Assuming the 90 days trading horizon BetaPro Crude Oil is expected to generate 5.86 times more return on investment than RBC Quant. However, BetaPro Crude is 5.86 times more volatile than RBC Quant European. It trades about 0.13 of its potential returns per unit of risk. RBC Quant European is currently generating about 0.36 per unit of risk. If you would invest 910.00 in BetaPro Crude Oil on November 26, 2025 and sell it today you would earn a total of 252.00 from holding BetaPro Crude Oil or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro Crude Oil vs. RBC Quant European
Performance |
| Timeline |
| BetaPro Crude Oil |
| RBC Quant European |
BetaPro Crude and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Crude and RBC Quant
The main advantage of trading using opposite BetaPro Crude and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Crude 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.| BetaPro Crude vs. BetaPro Silver 2x | BetaPro Crude vs. BetaPro Canadian Gold | BetaPro Crude vs. BetaPro SPTSX Capped | BetaPro Crude vs. BetaPro SPTSX 60 |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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