Correlation Between Accelerate OneChoice and NBI High
Can any of the company-specific risk be diversified away by investing in both Accelerate OneChoice and NBI 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 Accelerate OneChoice and NBI High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate OneChoice Alternative and NBI High Yield, you can compare the effects of market volatilities on Accelerate OneChoice and NBI 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 Accelerate OneChoice with a short position of NBI High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate OneChoice and NBI High.
Diversification Opportunities for Accelerate OneChoice and NBI High
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accelerate and NBI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate OneChoice Alternati and NBI High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI High Yield and Accelerate OneChoice 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 Accelerate OneChoice Alternative are associated (or correlated) with NBI High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI High Yield has no effect on the direction of Accelerate OneChoice i.e., Accelerate OneChoice and NBI High go up and down completely randomly.
Pair Corralation between Accelerate OneChoice and NBI High
Assuming the 90 days trading horizon Accelerate OneChoice is expected to generate 2.15 times less return on investment than NBI High. But when comparing it to its historical volatility, Accelerate OneChoice Alternative is 6.67 times less risky than NBI High. It trades about 0.08 of its potential returns per unit of risk. NBI High Yield is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,904 in NBI High Yield on September 3, 2024 and sell it today you would earn a total of 293.00 from holding NBI High Yield or generate 15.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.92% |
| Values | Daily Returns |
Accelerate OneChoice Alternati vs. NBI High Yield
Performance |
| Timeline |
| Accelerate OneChoice |
| NBI High Yield |
Accelerate OneChoice and NBI High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate OneChoice and NBI High
The main advantage of trading using opposite Accelerate OneChoice and NBI High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate OneChoice position performs unexpectedly, NBI 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 NBI High will offset losses from the drop in NBI High's long position.| Accelerate OneChoice vs. NBI Liquid Alternatives | Accelerate OneChoice vs. BMO Aggregate Bond | Accelerate OneChoice vs. iShares Canadian HYBrid | Accelerate OneChoice vs. Brompton European Dividend |
| NBI High vs. NBI Unconstrained Fixed | NBI High vs. NBI Active Canadian | NBI High vs. NBI Sustainable Canadian | NBI High vs. Picton Mahoney Fortified |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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