Correlation Between Mackenzie Core and Mackenzie High
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core and Mackenzie High 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 Core and Mackenzie High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Core Plus and Mackenzie High Yield, you can compare the effects of market volatilities on Mackenzie Core and Mackenzie High 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 Core with a short position of Mackenzie High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and Mackenzie High.
Diversification Opportunities for Mackenzie Core and Mackenzie High
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mackenzie and Mackenzie is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and Mackenzie High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie High Yield and Mackenzie Core 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 Core Plus are associated (or correlated) with Mackenzie High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie High Yield has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and Mackenzie High go up and down completely randomly.
Pair Corralation between Mackenzie Core and Mackenzie High
Assuming the 90 days trading horizon Mackenzie Core is expected to generate 3.2 times less return on investment than Mackenzie High. But when comparing it to its historical volatility, Mackenzie Core Plus is 1.16 times less risky than Mackenzie High. It trades about 0.04 of its potential returns per unit of risk. Mackenzie High Yield is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,595 in Mackenzie High Yield on November 19, 2024 and sell it today you would earn a total of 1,694 from holding Mackenzie High Yield or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Core Plus vs. Mackenzie High Yield
Performance |
| Timeline |
| Mackenzie Core Plus |
| Mackenzie High Yield |
Mackenzie Core and Mackenzie High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and Mackenzie High
The main advantage of trading using opposite Mackenzie Core and Mackenzie High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core position performs unexpectedly, Mackenzie High 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 Mackenzie High will offset losses from the drop in Mackenzie High's long position.| Mackenzie Core vs. Mackenzie Core Plus | Mackenzie Core vs. Mackenzie Floating Rate | Mackenzie Core vs. Mackenzie Unconstrained Bond | Mackenzie Core vs. Mackenzie Canadian Short |
| Mackenzie High vs. Mackenzie Developed ex North | Mackenzie High vs. Mackenzie Global Sustainable | Mackenzie High vs. Mackenzie Aggregate Bond | Mackenzie High 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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