Correlation Between Mawer Global and RBC European
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By analyzing existing cross correlation between Mawer Global Equity and RBC European Mid Cap, you can compare the effects of market volatilities on Mawer Global and RBC European 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 RBC European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and RBC European.
Diversification Opportunities for Mawer Global and RBC European
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mawer and RBC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Equity and RBC European Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC European Mid 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 RBC European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC European Mid has no effect on the direction of Mawer Global i.e., Mawer Global and RBC European go up and down completely randomly.
Pair Corralation between Mawer Global and RBC European
Assuming the 90 days trading horizon Mawer Global Equity is expected to under-perform the RBC European. But the fund apears to be less risky and, when comparing its historical volatility, Mawer Global Equity is 1.04 times less risky than RBC European. The fund trades about -0.31 of its potential returns per unit of risk. The RBC European Mid Cap is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,366 in RBC European Mid Cap on October 11, 2024 and sell it today you would lose (23.00) from holding RBC European Mid Cap or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mawer Global Equity vs. RBC European Mid Cap
Performance |
| Timeline |
| Mawer Global Equity |
| RBC European Mid |
Mawer Global and RBC European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Global and RBC European
The main advantage of trading using opposite Mawer Global and RBC European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Global position performs unexpectedly, RBC European 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 European will offset losses from the drop in RBC European's long position.| Mawer Global vs. RBC Select Balanced | Mawer Global vs. PIMCO Monthly Income | Mawer Global vs. RBC Portefeuille de | Mawer Global vs. Edgepoint Global Portfolio |
| RBC European vs. CDSPI Canadian Equity | RBC European vs. Fidelity Global Equity | RBC European vs. Mawer Global Equity | RBC European vs. Tangerine Equity Growth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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