Correlation Between NBI Global and Mackenzie Global
Can any of the company-specific risk be diversified away by investing in both NBI Global 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 NBI Global and Mackenzie Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NBI Global Real and Mackenzie Global Sustainable, you can compare the effects of market volatilities on NBI Global 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 NBI Global with a short position of Mackenzie Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Global and Mackenzie Global.
Diversification Opportunities for NBI Global and Mackenzie Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NBI and Mackenzie is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding NBI Global Real and Mackenzie Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Global Sus and NBI Global 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 NBI Global Real 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 Sus has no effect on the direction of NBI Global i.e., NBI Global and Mackenzie Global go up and down completely randomly.
Pair Corralation between NBI Global and Mackenzie Global
Assuming the 90 days trading horizon NBI Global is expected to generate 1.4 times less return on investment than Mackenzie Global. But when comparing it to its historical volatility, NBI Global Real is 1.49 times less risky than Mackenzie Global. It trades about 0.21 of its potential returns per unit of risk. Mackenzie Global Sustainable is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,632 in Mackenzie Global Sustainable on August 29, 2024 and sell it today you would earn a total of 107.00 from holding Mackenzie Global Sustainable or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBI Global Real vs. Mackenzie Global Sustainable
Performance |
| Timeline |
| NBI Global Real |
| Mackenzie Global Sus |
NBI Global and Mackenzie Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBI Global and Mackenzie Global
The main advantage of trading using opposite NBI Global and Mackenzie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Global 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.| NBI Global vs. Global Healthcare Income | NBI Global vs. Tech Leaders Income | NBI Global vs. Brompton North American | NBI Global vs. Brompton European Dividend |
| Mackenzie Global vs. Global Healthcare Income | Mackenzie Global vs. Tech Leaders Income | Mackenzie Global vs. Brompton North American | Mackenzie Global vs. Brompton European Dividend |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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