Correlation Between Mackenzie Core and Mackenzie Global
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core and Mackenzie Global 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 Global 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 Global Fixed, you can compare the effects of market volatilities on Mackenzie Core and Mackenzie Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and Mackenzie Global.
Diversification Opportunities for Mackenzie Core and Mackenzie Global
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mackenzie and Mackenzie is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and Mackenzie Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Global Fixed 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Global Fixed has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and Mackenzie Global go up and down completely randomly.
Pair Corralation between Mackenzie Core and Mackenzie Global
Assuming the 90 days trading horizon Mackenzie Core Plus is expected to generate 1.3 times more return on investment than Mackenzie Global. However, Mackenzie Core is 1.3 times more volatile than Mackenzie Global Fixed. It trades about 0.15 of its potential returns per unit of risk. Mackenzie Global Fixed is currently generating about 0.07 per unit of risk. If you would invest 1,919 in Mackenzie Core Plus on September 5, 2024 and sell it today you would earn a total of 26.00 from holding Mackenzie Core Plus or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mackenzie Core Plus vs. Mackenzie Global Fixed
Performance |
| Timeline |
| Mackenzie Core Plus |
| Mackenzie Global Fixed |
Mackenzie Core and Mackenzie Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and Mackenzie Global
The main advantage of trading using opposite Mackenzie Core and Mackenzie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core position performs unexpectedly, Mackenzie Global 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 Global will offset losses from the drop in Mackenzie Global's long position.| Mackenzie Core vs. Mackenzie Core Plus | Mackenzie Core vs. Mackenzie Unconstrained Bond | Mackenzie Core vs. Mackenzie Floating Rate | Mackenzie Core vs. Mackenzie Canadian Aggregate |
| Mackenzie Global vs. Mackenzie Developed ex North | Mackenzie Global vs. Mackenzie Global Sustainable | Mackenzie Global vs. Mackenzie Aggregate Bond | Mackenzie Global 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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