Correlation Between BetaPro SP and Mackenzie Global
Can any of the company-specific risk be diversified away by investing in both BetaPro SP and Mackenzie Global 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 Global 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 Global Infrastructure, you can compare the effects of market volatilities on BetaPro SP and Mackenzie Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and Mackenzie Global.
Diversification Opportunities for BetaPro SP and Mackenzie Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BetaPro and Mackenzie is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 and Mackenzie Global Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Global Inf 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Global Inf has no effect on the direction of BetaPro SP i.e., BetaPro SP and Mackenzie Global go up and down completely randomly.
Pair Corralation between BetaPro SP and Mackenzie Global
Assuming the 90 days trading horizon BetaPro SP 500 is expected to generate 2.33 times more return on investment than Mackenzie Global. However, BetaPro SP is 2.33 times more volatile than Mackenzie Global Infrastructure. It trades about 0.35 of its potential returns per unit of risk. Mackenzie Global Infrastructure is currently generating about 0.49 per unit of risk. If you would invest 2,441 in BetaPro SP 500 on September 3, 2024 and sell it today you would earn a total of 273.00 from holding BetaPro SP 500 or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SP 500 vs. Mackenzie Global Infrastructur
Performance |
| Timeline |
| BetaPro SP 500 |
| Mackenzie Global Inf |
BetaPro SP and Mackenzie Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SP and Mackenzie Global
The main advantage of trading using opposite BetaPro SP and Mackenzie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP position performs unexpectedly, Mackenzie Global 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 Global will offset losses from the drop in Mackenzie Global's long position.| BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro SP TSX | BetaPro SP vs. BetaPro NASDAQ 100 2x |
| Mackenzie Global vs. Mackenzie Developed ex North | Mackenzie Global vs. Mackenzie Global Sustainable | Mackenzie Global vs. Mackenzie Aggregate Bond | Mackenzie Global 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |