Correlation Between Mackenzie Core and IShares Floating
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core and IShares Floating 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 IShares Floating 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 iShares Floating Rate, you can compare the effects of market volatilities on Mackenzie Core and IShares Floating 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 IShares Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and IShares Floating.
Diversification Opportunities for Mackenzie Core and IShares Floating
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mackenzie and IShares is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and iShares Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Floating Rate 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 IShares Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Floating Rate has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and IShares Floating go up and down completely randomly.
Pair Corralation between Mackenzie Core and IShares Floating
Assuming the 90 days trading horizon Mackenzie Core Plus is expected to under-perform the IShares Floating. In addition to that, Mackenzie Core is 6.91 times more volatile than iShares Floating Rate. It trades about -0.03 of its total potential returns per unit of risk. iShares Floating Rate is currently generating about 0.23 per unit of volatility. If you would invest 1,998 in iShares Floating Rate on August 27, 2024 and sell it today you would earn a total of 4.00 from holding iShares Floating Rate or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Core Plus vs. iShares Floating Rate
Performance |
| Timeline |
| Mackenzie Core Plus |
| iShares Floating Rate |
Mackenzie Core and IShares Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and IShares Floating
The main advantage of trading using opposite Mackenzie Core and IShares Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core position performs unexpectedly, IShares Floating 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 IShares Floating will offset losses from the drop in IShares Floating'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 Short |
| IShares Floating vs. Mackenzie Canadian Aggregate | IShares Floating vs. Mackenzie Core Plus | IShares Floating vs. Mackenzie Investment Grade | IShares Floating vs. Mackenzie Core Plus |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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