Correlation Between Mackenzie Balanced and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Mackenzie Balanced and RBC Quant 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 Mackenzie Balanced and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Balanced Allocation and RBC Quant Canadian, you can compare the effects of market volatilities on Mackenzie Balanced and RBC Quant 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 Mackenzie Balanced with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Balanced and RBC Quant.
Diversification Opportunities for Mackenzie Balanced and RBC Quant
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mackenzie and RBC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Balanced Allocation and RBC Quant Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Canadian and Mackenzie Balanced 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 Mackenzie Balanced Allocation are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant Canadian has no effect on the direction of Mackenzie Balanced i.e., Mackenzie Balanced and RBC Quant go up and down completely randomly.
Pair Corralation between Mackenzie Balanced and RBC Quant
Assuming the 90 days trading horizon Mackenzie Balanced is expected to generate 2.15 times less return on investment than RBC Quant. But when comparing it to its historical volatility, Mackenzie Balanced Allocation is 1.11 times less risky than RBC Quant. It trades about 0.09 of its potential returns per unit of risk. RBC Quant Canadian is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,880 in RBC Quant Canadian on October 22, 2025 and sell it today you would earn a total of 987.00 from holding RBC Quant Canadian or generate 34.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Balanced Allocation vs. RBC Quant Canadian
Performance |
| Timeline |
| Mackenzie Balanced |
| RBC Quant Canadian |
Mackenzie Balanced and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Balanced and RBC Quant
The main advantage of trading using opposite Mackenzie Balanced and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Balanced position performs unexpectedly, RBC Quant 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 Quant will offset losses from the drop in RBC Quant's long position.| Mackenzie Balanced vs. iShares SPTSX Global | Mackenzie Balanced vs. iShares SPTSX Capped | Mackenzie Balanced vs. Global X Enhanced | Mackenzie Balanced vs. Vanguard FTSE Canadian |
| RBC Quant vs. RBC Quant Dividend | RBC Quant vs. RBC Quant Dividend | RBC Quant vs. Fidelity Canadian High | RBC Quant vs. iShares MSCI Europe |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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