Correlation Between Mackenzie Core and Harvest Premium
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core and Harvest Premium 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 Harvest Premium 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 Harvest Premium Yield, you can compare the effects of market volatilities on Mackenzie Core and Harvest Premium 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 Harvest Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and Harvest Premium.
Diversification Opportunities for Mackenzie Core and Harvest Premium
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mackenzie and Harvest is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and Harvest Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Premium 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 Harvest Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Premium Yield has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and Harvest Premium go up and down completely randomly.
Pair Corralation between Mackenzie Core and Harvest Premium
Assuming the 90 days trading horizon Mackenzie Core Plus is expected to generate 0.45 times more return on investment than Harvest Premium. However, Mackenzie Core Plus is 2.2 times less risky than Harvest Premium. It trades about 0.14 of its potential returns per unit of risk. Harvest Premium Yield is currently generating about 0.05 per unit of risk. If you would invest 1,833 in Mackenzie Core Plus on September 3, 2024 and sell it today you would earn a total of 126.00 from holding Mackenzie Core Plus or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Core Plus vs. Harvest Premium Yield
Performance |
| Timeline |
| Mackenzie Core Plus |
| Harvest Premium Yield |
Mackenzie Core and Harvest Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and Harvest Premium
The main advantage of trading using opposite Mackenzie Core and Harvest Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core position performs unexpectedly, Harvest Premium 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 Harvest Premium will offset losses from the drop in Harvest Premium's long position.| Mackenzie Core vs. BMO Short Corporate | Mackenzie Core vs. BMO High Yield | Mackenzie Core vs. iShares Core Canadian | Mackenzie Core vs. Harvest Global REIT |
| Harvest Premium vs. Mackenzie Core Plus | Harvest Premium vs. Mackenzie Floating Rate | Harvest Premium vs. Mackenzie Unconstrained Bond | Harvest Premium vs. Mackenzie Canadian Short |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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