Correlation Between Mawer Global and Edgepoint Global
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By analyzing existing cross correlation between Mawer Global Equity and Edgepoint Global Portfolio, you can compare the effects of market volatilities on Mawer Global and Edgepoint 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 Mawer Global with a short position of Edgepoint Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and Edgepoint Global.
Diversification Opportunities for Mawer Global and Edgepoint Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawer and Edgepoint is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Equity and Edgepoint Global Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Global Por and Mawer Global 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 Mawer Global Equity are associated (or correlated) with Edgepoint Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Global Por has no effect on the direction of Mawer Global i.e., Mawer Global and Edgepoint Global go up and down completely randomly.
Pair Corralation between Mawer Global and Edgepoint Global
Assuming the 90 days trading horizon Mawer Global is expected to generate 1.27 times less return on investment than Edgepoint Global. But when comparing it to its historical volatility, Mawer Global Equity is 1.28 times less risky than Edgepoint Global. It trades about 0.07 of its potential returns per unit of risk. Edgepoint Global Portfolio is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,643 in Edgepoint Global Portfolio on September 3, 2024 and sell it today you would earn a total of 274.00 from holding Edgepoint Global Portfolio or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.19% |
| Values | Daily Returns |
Mawer Global Equity vs. Edgepoint Global Portfolio
Performance |
| Timeline |
| Mawer Global Equity |
| Edgepoint Global Por |
Mawer Global and Edgepoint Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Global and Edgepoint Global
The main advantage of trading using opposite Mawer Global and Edgepoint Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Global position performs unexpectedly, Edgepoint 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 Edgepoint Global will offset losses from the drop in Edgepoint Global's long position.| Mawer Global vs. Mawer Canadien obligations | Mawer Global vs. Mawer Balanced | Mawer Global vs. Mawer dactions internationales | Mawer Global vs. Mawer Equity A |
| Edgepoint Global vs. Edgepoint Cdn Growth | Edgepoint Global vs. Edgepoint Global Growth | Edgepoint Global vs. Edgepoint Canadian Portfolio | Edgepoint Global vs. Edgepoint Global Portfolio |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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