Correlation Between IA Clarington and RBC Select
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By analyzing existing cross correlation between IA Clarington Strategic and RBC Select Balanced, you can compare the effects of market volatilities on IA Clarington and RBC Select 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 IA Clarington with a short position of RBC Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Clarington and RBC Select.
Diversification Opportunities for IA Clarington and RBC Select
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ISCB and RBC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding IA Clarington Strategic and RBC Select Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Select Balanced and IA Clarington 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 IA Clarington Strategic are associated (or correlated) with RBC Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Select Balanced has no effect on the direction of IA Clarington i.e., IA Clarington and RBC Select go up and down completely randomly.
Pair Corralation between IA Clarington and RBC Select
Assuming the 90 days trading horizon IA Clarington is expected to generate 24.04 times less return on investment than RBC Select. But when comparing it to its historical volatility, IA Clarington Strategic is 1.89 times less risky than RBC Select. It trades about 0.03 of its potential returns per unit of risk. RBC Select Balanced is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 3,492 in RBC Select Balanced on September 13, 2024 and sell it today you would earn a total of 80.00 from holding RBC Select Balanced or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IA Clarington Strategic vs. RBC Select Balanced
Performance |
| Timeline |
| IA Clarington Strategic |
| RBC Select Balanced |
IA Clarington and RBC Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Clarington and RBC Select
The main advantage of trading using opposite IA Clarington and RBC Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Clarington position performs unexpectedly, RBC Select 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 Select will offset losses from the drop in RBC Select's long position.| IA Clarington vs. RBC Select Balanced | IA Clarington vs. RBC Portefeuille de | IA Clarington vs. Edgepoint Global Portfolio | IA Clarington vs. TD Comfort Balanced |
| RBC Select vs. RBC mondial dnergie | RBC Select vs. RBC dactions mondiales | RBC Select vs. RBC European Mid Cap | RBC Select vs. RBC Global Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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