Correlation Between Rbc Bluebay and Inflation Protected
Can any of the company-specific risk be diversified away by investing in both Rbc Bluebay and Inflation Protected 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 Rbc Bluebay and Inflation Protected into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Bluebay Core and Inflation Protected Bond Fund, you can compare the effects of market volatilities on Rbc Bluebay and Inflation Protected 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 Rbc Bluebay with a short position of Inflation Protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Bluebay and Inflation Protected.
Diversification Opportunities for Rbc Bluebay and Inflation Protected
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rbc and Inflation is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Bluebay Core and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected and Rbc Bluebay 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 Rbc Bluebay Core are associated (or correlated) with Inflation Protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Rbc Bluebay i.e., Rbc Bluebay and Inflation Protected go up and down completely randomly.
Pair Corralation between Rbc Bluebay and Inflation Protected
Assuming the 90 days horizon Rbc Bluebay Core is expected to under-perform the Inflation Protected. But the mutual fund apears to be less risky and, when comparing its historical volatility, Rbc Bluebay Core is 1.1 times less risky than Inflation Protected. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Inflation Protected Bond Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Inflation Protected Bond Fund on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Inflation Protected Bond Fund or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc Bluebay Core vs. Inflation Protected Bond Fund
Performance |
| Timeline |
| Rbc Bluebay Core |
| Inflation Protected |
Rbc Bluebay and Inflation Protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Bluebay and Inflation Protected
The main advantage of trading using opposite Rbc Bluebay and Inflation Protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Bluebay position performs unexpectedly, Inflation Protected 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 Inflation Protected will offset losses from the drop in Inflation Protected's long position.| Rbc Bluebay vs. Wasatch Small Cap | Rbc Bluebay vs. Blackrock Sm Cap | Rbc Bluebay vs. The Gabelli Small | Rbc Bluebay vs. Lord Abbett Diversified |
| Inflation Protected vs. First American Funds | Inflation Protected vs. Hsbc Treasury Money | Inflation Protected vs. Janus Investment | Inflation Protected vs. General Money 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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