Correlation Between Mackenzie Aggregate and Mackenzie Global
Can any of the company-specific risk be diversified away by investing in both Mackenzie Aggregate 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 Mackenzie Aggregate and Mackenzie Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Aggregate Bond and Mackenzie Global Infrastructure, you can compare the effects of market volatilities on Mackenzie Aggregate 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 Mackenzie Aggregate with a short position of Mackenzie Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Aggregate and Mackenzie Global.
Diversification Opportunities for Mackenzie Aggregate and Mackenzie Global
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mackenzie and Mackenzie is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Aggregate Bond and Mackenzie Global Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Global Inf and Mackenzie Aggregate 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 Aggregate Bond 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 Inf has no effect on the direction of Mackenzie Aggregate i.e., Mackenzie Aggregate and Mackenzie Global go up and down completely randomly.
Pair Corralation between Mackenzie Aggregate and Mackenzie Global
Assuming the 90 days trading horizon Mackenzie Aggregate Bond is expected to under-perform the Mackenzie Global. But the etf apears to be less risky and, when comparing its historical volatility, Mackenzie Aggregate Bond is 2.19 times less risky than Mackenzie Global. The etf trades about -0.02 of its potential returns per unit of risk. The Mackenzie Global Infrastructure is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 12,529 in Mackenzie Global Infrastructure on November 3, 2024 and sell it today you would earn a total of 1,738 from holding Mackenzie Global Infrastructure or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Aggregate Bond vs. Mackenzie Global Infrastructur
Performance |
| Timeline |
| Mackenzie Aggregate Bond |
| Mackenzie Global Inf |
Mackenzie Aggregate and Mackenzie Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Aggregate and Mackenzie Global
The main advantage of trading using opposite Mackenzie Aggregate and Mackenzie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Aggregate 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.| Mackenzie Aggregate vs. Mackenzie Developed ex North | Mackenzie Aggregate vs. Mackenzie Global Sustainable | Mackenzie Aggregate vs. Mackenzie Canadian Ultra | Mackenzie Aggregate vs. Mackenzie TIPS Index |
| Mackenzie Global vs. Mackenzie Developed ex North | Mackenzie Global vs. Mackenzie Global Sustainable | Mackenzie Global vs. Mackenzie Aggregate Bond | Mackenzie Global vs. Mackenzie Canadian Ultra |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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