Correlation Between Meta Platforms and RBC Short
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and RBC Short 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 Meta Platforms and RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and RBC Short Term, you can compare the effects of market volatilities on Meta Platforms and RBC Short 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 Meta Platforms with a short position of RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and RBC Short.
Diversification Opportunities for Meta Platforms and RBC Short
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meta and RBC is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term and Meta Platforms 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 Meta Platforms are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of Meta Platforms i.e., Meta Platforms and RBC Short go up and down completely randomly.
Pair Corralation between Meta Platforms and RBC Short
Given the investment horizon of 90 days Meta Platforms is expected to generate 3.9 times more return on investment than RBC Short. However, Meta Platforms is 3.9 times more volatile than RBC Short Term. It trades about 0.09 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.08 per unit of risk. If you would invest 63,543 in Meta Platforms on November 5, 2025 and sell it today you would earn a total of 7,098 from holding Meta Platforms or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meta Platforms vs. RBC Short Term
Performance |
| Timeline |
| Meta Platforms |
| RBC Short Term |
Meta Platforms and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and RBC Short
The main advantage of trading using opposite Meta Platforms and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, RBC Short 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 Short will offset losses from the drop in RBC Short's long position.| Meta Platforms vs. Taiwan Semiconductor Manufacturing | Meta Platforms vs. Broadcom | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Oracle |
| RBC Short vs. BMO All Equity ETF | RBC Short vs. TD Active Global | RBC Short vs. First Asset Morningstar | RBC Short vs. Dynamic Active Canadian |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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