Correlation Between BetaPro SPTSX and Mackenzie Canadian
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX 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 SPTSX 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 SPTSX 60 and Mackenzie Canadian Equity, you can compare the effects of market volatilities on BetaPro SPTSX 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 SPTSX with a short position of Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and Mackenzie Canadian.
Diversification Opportunities for BetaPro SPTSX and Mackenzie Canadian
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Mackenzie is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 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 SPTSX 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 SPTSX 60 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 SPTSX i.e., BetaPro SPTSX and Mackenzie Canadian go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and Mackenzie Canadian
Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the Mackenzie Canadian. In addition to that, BetaPro SPTSX is 1.94 times more volatile than Mackenzie Canadian Equity. It trades about -0.18 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SPTSX 60 vs. Mackenzie Canadian Equity
Performance |
| Timeline |
| BetaPro SPTSX 60 |
| Mackenzie Canadian Equity |
BetaPro SPTSX and Mackenzie Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and Mackenzie Canadian
The main advantage of trading using opposite BetaPro SPTSX and Mackenzie Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX 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 SPTSX vs. BetaPro Gold Bullion | BetaPro SPTSX vs. BetaPro NASDAQ 100 2x | BetaPro SPTSX vs. BetaPro SP TSX | BetaPro SPTSX vs. BetaPro SP TSX |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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