Correlation Between Mackenzie High and IShares 1
Can any of the company-specific risk be diversified away by investing in both Mackenzie High and IShares 1 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 High and IShares 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie High Yield and iShares 1 10Yr Laddered, you can compare the effects of market volatilities on Mackenzie High and IShares 1 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 High with a short position of IShares 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie High and IShares 1.
Diversification Opportunities for Mackenzie High and IShares 1
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mackenzie and IShares is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie High Yield and iShares 1 10Yr Laddered in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 1 10Yr and Mackenzie High 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 High Yield are associated (or correlated) with IShares 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 1 10Yr has no effect on the direction of Mackenzie High i.e., Mackenzie High and IShares 1 go up and down completely randomly.
Pair Corralation between Mackenzie High and IShares 1
Assuming the 90 days trading horizon Mackenzie High is expected to generate 4.74 times less return on investment than IShares 1. In addition to that, Mackenzie High is 1.0 times more volatile than iShares 1 10Yr Laddered. It trades about 0.04 of its total potential returns per unit of risk. iShares 1 10Yr Laddered is currently generating about 0.19 per unit of volatility. If you would invest 1,776 in iShares 1 10Yr Laddered on September 12, 2024 and sell it today you would earn a total of 22.00 from holding iShares 1 10Yr Laddered or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie High Yield vs. iShares 1 10Yr Laddered
Performance |
| Timeline |
| Mackenzie High Yield |
| iShares 1 10Yr |
Mackenzie High and IShares 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie High and IShares 1
The main advantage of trading using opposite Mackenzie High and IShares 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie High position performs unexpectedly, IShares 1 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 1 will offset losses from the drop in IShares 1's long position.| Mackenzie High vs. Purpose Premium Yield | Mackenzie High vs. Purpose Monthly Income | Mackenzie High vs. Purpose International Dividend | Mackenzie High vs. Purpose Enhanced Dividend |
| IShares 1 vs. iShares Core Canadian | IShares 1 vs. BMO Mid Corporate | IShares 1 vs. Global X Active | IShares 1 vs. RBC Target 2026 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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