Correlation Between Rbc Bluebay and Bats Series
Can any of the company-specific risk be diversified away by investing in both Rbc Bluebay and Bats Series 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 Bats Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Bluebay Global and Bats Series S, you can compare the effects of market volatilities on Rbc Bluebay and Bats Series 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 Bats Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Bluebay and Bats Series.
Diversification Opportunities for Rbc Bluebay and Bats Series
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rbc and Bats is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Bluebay Global and Bats Series S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bats Series S 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 Global are associated (or correlated) with Bats Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bats Series S has no effect on the direction of Rbc Bluebay i.e., Rbc Bluebay and Bats Series go up and down completely randomly.
Pair Corralation between Rbc Bluebay and Bats Series
Assuming the 90 days horizon Rbc Bluebay Global is expected to generate 1.16 times more return on investment than Bats Series. However, Rbc Bluebay is 1.16 times more volatile than Bats Series S. It trades about 0.29 of its potential returns per unit of risk. Bats Series S is currently generating about 0.11 per unit of risk. If you would invest 943.00 in Rbc Bluebay Global on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Rbc Bluebay Global or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc Bluebay Global vs. Bats Series S
Performance |
| Timeline |
| Rbc Bluebay Global |
| Bats Series S |
Rbc Bluebay and Bats Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Bluebay and Bats Series
The main advantage of trading using opposite Rbc Bluebay and Bats Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Bluebay position performs unexpectedly, Bats Series 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 Bats Series will offset losses from the drop in Bats Series' long position.| Rbc Bluebay vs. Jpmorgan Income Fund | Rbc Bluebay vs. Prudential High Yield | Rbc Bluebay vs. Parametric Modity Strategy | Rbc Bluebay vs. Prudential Floating Rate |
| Bats Series vs. Bats Series M | Bats Series vs. Bats Series C | Bats Series vs. Bats Series E | Bats Series vs. Bats Series P |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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