Correlation Between PICTON Credit and RBC Short
Can any of the company-specific risk be diversified away by investing in both PICTON Credit and RBC Short 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 PICTON Credit and RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICTON Credit Opportunities and RBC Short Term, you can compare the effects of market volatilities on PICTON Credit and RBC Short 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 PICTON Credit with a short position of RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICTON Credit and RBC Short.
Diversification Opportunities for PICTON Credit and RBC Short
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PICTON and RBC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PICTON Credit Opportunities and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term and PICTON Credit 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 PICTON Credit Opportunities are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of PICTON Credit i.e., PICTON Credit and RBC Short go up and down completely randomly.
Pair Corralation between PICTON Credit and RBC Short
Assuming the 90 days trading horizon PICTON Credit Opportunities is expected to generate 0.28 times more return on investment than RBC Short. However, PICTON Credit Opportunities is 3.54 times less risky than RBC Short. It trades about 0.11 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.04 per unit of risk. If you would invest 947.00 in PICTON Credit Opportunities on November 17, 2025 and sell it today you would earn a total of 10.00 from holding PICTON Credit Opportunities or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICTON Credit Opportunities vs. RBC Short Term
Performance |
| Timeline |
| PICTON Credit Opport |
| RBC Short Term |
PICTON Credit and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICTON Credit and RBC Short
The main advantage of trading using opposite PICTON Credit and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICTON Credit position performs unexpectedly, RBC Short 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 RBC Short will offset losses from the drop in RBC Short's long position.| PICTON Credit vs. iShares SPTSX 60 | PICTON Credit vs. iShares Core SP | PICTON Credit vs. iShares Core SPTSX | PICTON Credit vs. BMO Aggregate Bond |
| RBC Short vs. BMO All Equity ETF | RBC Short vs. TD Active Global | RBC Short vs. First Asset Morningstar | RBC Short vs. Dynamic Active Canadian |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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