Correlation Between Mackenzie Floating and Guardian International
Can any of the company-specific risk be diversified away by investing in both Mackenzie Floating and Guardian International 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 Floating and Guardian International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Floating Rate and Guardian International Equity, you can compare the effects of market volatilities on Mackenzie Floating and Guardian International 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 Floating with a short position of Guardian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Floating and Guardian International.
Diversification Opportunities for Mackenzie Floating and Guardian International
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mackenzie and Guardian is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Floating Rate and Guardian International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian International and Mackenzie Floating 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 Floating Rate are associated (or correlated) with Guardian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian International has no effect on the direction of Mackenzie Floating i.e., Mackenzie Floating and Guardian International go up and down completely randomly.
Pair Corralation between Mackenzie Floating and Guardian International
Assuming the 90 days trading horizon Mackenzie Floating Rate is expected to generate 0.22 times more return on investment than Guardian International. However, Mackenzie Floating Rate is 4.49 times less risky than Guardian International. It trades about 0.23 of its potential returns per unit of risk. Guardian International Equity is currently generating about -0.05 per unit of risk. If you would invest 1,644 in Mackenzie Floating Rate on September 13, 2024 and sell it today you would earn a total of 75.00 from holding Mackenzie Floating Rate or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Floating Rate vs. Guardian International Equity
Performance |
| Timeline |
| Mackenzie Floating Rate |
| Guardian International |
Mackenzie Floating and Guardian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Floating and Guardian International
The main advantage of trading using opposite Mackenzie Floating and Guardian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Floating position performs unexpectedly, Guardian International 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 Guardian International will offset losses from the drop in Guardian International's long position.| Mackenzie Floating vs. Mackenzie Developed ex North | Mackenzie Floating vs. Mackenzie Global Sustainable | Mackenzie Floating vs. Mackenzie Aggregate Bond | Mackenzie Floating vs. Mackenzie Canadian Ultra |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |