Correlation Between Information Services and RBC Discount
Can any of the company-specific risk be diversified away by investing in both Information Services and RBC Discount 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 Information Services and RBC Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Information Services and RBC Discount Bond, you can compare the effects of market volatilities on Information Services and RBC Discount 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 Information Services with a short position of RBC Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Information Services and RBC Discount.
Diversification Opportunities for Information Services and RBC Discount
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Information and RBC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Information Services and RBC Discount Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Discount Bond and Information Services 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 Information Services are associated (or correlated) with RBC Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Discount Bond has no effect on the direction of Information Services i.e., Information Services and RBC Discount go up and down completely randomly.
Pair Corralation between Information Services and RBC Discount
Assuming the 90 days trading horizon Information Services is expected to generate 7.69 times more return on investment than RBC Discount. However, Information Services is 7.69 times more volatile than RBC Discount Bond. It trades about 0.14 of its potential returns per unit of risk. RBC Discount Bond is currently generating about -0.11 per unit of risk. If you would invest 3,620 in Information Services on November 6, 2025 and sell it today you would earn a total of 844.00 from holding Information Services or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Information Services vs. RBC Discount Bond
Performance |
| Timeline |
| Information Services |
| RBC Discount Bond |
Information Services and RBC Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Information Services and RBC Discount
The main advantage of trading using opposite Information Services and RBC Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Information Services position performs unexpectedly, RBC Discount 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 Discount will offset losses from the drop in RBC Discount's long position.| Information Services vs. iShares Canadian HYBrid | Information Services vs. Brompton European Dividend | Information Services vs. Solar Alliance Energy | Information Services vs. European Residential Real |
| RBC Discount vs. RBC Target 2029 | RBC Discount vs. RBC Quant Dividend | RBC Discount vs. RBC Quant EAFE | RBC Discount vs. RBC Quant European |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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