Correlation Between First Asset and RBC Quant
Can any of the company-specific risk be diversified away by investing in both First Asset and RBC Quant 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 First Asset and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Asset Morningstar and RBC Quant EAFE, you can compare the effects of market volatilities on First Asset and RBC Quant 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 First Asset with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Asset and RBC Quant.
Diversification Opportunities for First Asset and RBC Quant
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and RBC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Morningstar and RBC Quant EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant EAFE and First Asset 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 First Asset Morningstar are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant EAFE has no effect on the direction of First Asset i.e., First Asset and RBC Quant go up and down completely randomly.
Pair Corralation between First Asset and RBC Quant
Assuming the 90 days trading horizon First Asset Morningstar is expected to generate 1.13 times more return on investment than RBC Quant. However, First Asset is 1.13 times more volatile than RBC Quant EAFE. It trades about 0.44 of its potential returns per unit of risk. RBC Quant EAFE is currently generating about 0.36 per unit of risk. If you would invest 3,671 in First Asset Morningstar on September 27, 2025 and sell it today you would earn a total of 198.00 from holding First Asset Morningstar or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Asset Morningstar vs. RBC Quant EAFE
Performance |
| Timeline |
| First Asset Morningstar |
| RBC Quant EAFE |
First Asset and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Asset and RBC Quant
The main advantage of trading using opposite First Asset and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Asset position performs unexpectedly, RBC Quant 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 Quant will offset losses from the drop in RBC Quant's long position.| First Asset vs. iShares Core MSCI | First Asset vs. TD Q International | First Asset vs. Hamilton Canadian Bank | First Asset vs. CI Canada Lifeco |
| RBC Quant vs. Invesco SP 500 | RBC Quant vs. BMO Canadian Dividend | RBC Quant vs. Russell Investments Global | RBC Quant vs. Vanguard Total Market |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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