Correlation Between IA Clarington and RBC Canadian
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By analyzing existing cross correlation between IA Clarington Strategic and RBC Canadian Equity, you can compare the effects of market volatilities on IA Clarington and RBC 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 IA Clarington with a short position of RBC Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Clarington and RBC Canadian.
Diversification Opportunities for IA Clarington and RBC Canadian
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ISCB and RBC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding IA Clarington Strategic and RBC Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Canadian Equity 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 Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Canadian Equity has no effect on the direction of IA Clarington i.e., IA Clarington and RBC Canadian go up and down completely randomly.
Pair Corralation between IA Clarington and RBC Canadian
Assuming the 90 days trading horizon IA Clarington is expected to generate 12.19 times less return on investment than RBC Canadian. But when comparing it to its historical volatility, IA Clarington Strategic is 3.49 times less risky than RBC Canadian. It trades about 0.05 of its potential returns per unit of risk. RBC Canadian Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,245 in RBC Canadian Equity on October 20, 2024 and sell it today you would earn a total of 50.00 from holding RBC Canadian Equity or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.68% |
| Values | Daily Returns |
IA Clarington Strategic vs. RBC Canadian Equity
Performance |
| Timeline |
| IA Clarington Strategic |
| RBC Canadian Equity |
IA Clarington and RBC Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Clarington and RBC Canadian
The main advantage of trading using opposite IA Clarington and RBC Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Clarington position performs unexpectedly, RBC 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 RBC Canadian will offset losses from the drop in RBC Canadian's long position.| IA Clarington vs. RBC Select Balanced | IA Clarington vs. PIMCO Monthly Income | IA Clarington vs. RBC Portefeuille de | IA Clarington vs. Edgepoint Global Portfolio |
| RBC Canadian vs. TD Dividend Growth | RBC Canadian vs. iShares Canadian HYBrid | RBC Canadian vs. Altagas Cum Red | RBC Canadian vs. European Residential Real |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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