Correlation Between RBC Discount and Golden Minerals
Can any of the company-specific risk be diversified away by investing in both RBC Discount and Golden Minerals 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 Discount and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Discount Bond and Golden Minerals, you can compare the effects of market volatilities on RBC Discount and Golden Minerals 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 Discount with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Discount and Golden Minerals.
Diversification Opportunities for RBC Discount and Golden Minerals
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RBC and Golden is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding RBC Discount Bond and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals and RBC Discount 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 Discount Bond are associated (or correlated) with Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of RBC Discount i.e., RBC Discount and Golden Minerals go up and down completely randomly.
Pair Corralation between RBC Discount and Golden Minerals
Assuming the 90 days trading horizon RBC Discount is expected to generate 3.45 times less return on investment than Golden Minerals. But when comparing it to its historical volatility, RBC Discount Bond is 19.02 times less risky than Golden Minerals. It trades about 0.17 of its potential returns per unit of risk. Golden Minerals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Golden Minerals on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Golden Minerals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
RBC Discount Bond vs. Golden Minerals
Performance |
| Timeline |
| RBC Discount Bond |
| Golden Minerals |
RBC Discount and Golden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Discount and Golden Minerals
The main advantage of trading using opposite RBC Discount and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Discount position performs unexpectedly, Golden Minerals 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 Golden Minerals will offset losses from the drop in Golden Minerals' long position.| RBC Discount vs. Mackenzie Core Plus | RBC Discount vs. Mackenzie Floating Rate | RBC Discount vs. Mackenzie Unconstrained Bond | RBC Discount vs. Mackenzie Canadian Short |
| Golden Minerals vs. iShares Canadian HYBrid | Golden Minerals vs. Altagas Cum Red | Golden Minerals vs. European Residential Real | Golden Minerals vs. RBC Discount Bond |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |