Correlation Between TD Select and RBC Quant
Can any of the company-specific risk be diversified away by investing in both TD Select 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 TD Select and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TD Select Short and RBC Quant European, you can compare the effects of market volatilities on TD Select 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 TD Select with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Select and RBC Quant.
Diversification Opportunities for TD Select and RBC Quant
Very good diversification
The 3 months correlation between TUSB and RBC is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding TD Select Short and RBC Quant European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant European and TD Select 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 TD Select Short 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 European has no effect on the direction of TD Select i.e., TD Select and RBC Quant go up and down completely randomly.
Pair Corralation between TD Select and RBC Quant
Assuming the 90 days trading horizon TD Select Short is expected to under-perform the RBC Quant. But the etf apears to be less risky and, when comparing its historical volatility, TD Select Short is 1.75 times less risky than RBC Quant. The etf trades about -0.08 of its potential returns per unit of risk. The RBC Quant European is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,074 in RBC Quant European on November 3, 2025 and sell it today you would earn a total of 333.00 from holding RBC Quant European or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TD Select Short vs. RBC Quant European
Performance |
| Timeline |
| TD Select Short |
| RBC Quant European |
TD Select and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Select and RBC Quant
The main advantage of trading using opposite TD Select and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Select 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.| TD Select vs. Fidelity High Dividend | TD Select vs. BetaPro SPTSX 60 | TD Select vs. First Trust AlphaDEX | TD Select vs. First Trust Global |
| RBC Quant vs. Global X Enhanced | RBC Quant vs. Brompton North American | RBC Quant vs. BMO Global Enhanced | RBC Quant vs. Purpose Total Return |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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