Correlation Between BetaPro NASDAQ and Mackenzie Canadian
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and Mackenzie Canadian 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 NASDAQ and Mackenzie Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro NASDAQ 100 2x and Mackenzie Canadian Equity, you can compare the effects of market volatilities on BetaPro NASDAQ and Mackenzie Canadian 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 NASDAQ with a short position of Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and Mackenzie Canadian.
Diversification Opportunities for BetaPro NASDAQ and Mackenzie Canadian
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Mackenzie is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and Mackenzie Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Canadian Equity and BetaPro NASDAQ 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 NASDAQ 100 2x are associated (or correlated) with Mackenzie Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Canadian Equity has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and Mackenzie Canadian go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and Mackenzie Canadian
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to under-perform the Mackenzie Canadian. In addition to that, BetaPro NASDAQ is 3.69 times more volatile than Mackenzie Canadian Equity. It trades about -0.07 of its total potential returns per unit of risk. Mackenzie Canadian Equity is currently generating about 0.2 per unit of volatility. If you would invest 13,307 in Mackenzie Canadian Equity on September 1, 2024 and sell it today you would earn a total of 2,352 from holding Mackenzie Canadian Equity or generate 17.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. Mackenzie Canadian Equity
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| Mackenzie Canadian Equity |
BetaPro NASDAQ and Mackenzie Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and Mackenzie Canadian
The main advantage of trading using opposite BetaPro NASDAQ and Mackenzie Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, Mackenzie Canadian 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 Canadian will offset losses from the drop in Mackenzie Canadian's long position.| BetaPro NASDAQ vs. BetaPro SPTSX Capped | BetaPro NASDAQ vs. Forstrong Global Income | BetaPro NASDAQ vs. BMO Aggregate Bond | BetaPro NASDAQ vs. iShares Canadian HYBrid |
| Mackenzie Canadian vs. Mackenzie Large Cap | Mackenzie Canadian vs. Goldman Sachs ActiveBeta | Mackenzie Canadian vs. BMO MSCI EAFE | Mackenzie Canadian vs. BMO Long Federal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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