Correlation Between BMO Aggregate and RBC Mondial
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By analyzing existing cross correlation between BMO Aggregate Bond and RBC mondial dnergie, you can compare the effects of market volatilities on BMO Aggregate and RBC Mondial 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 BMO Aggregate with a short position of RBC Mondial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and RBC Mondial.
Diversification Opportunities for BMO Aggregate and RBC Mondial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BMO and RBC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and RBC mondial dnergie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC mondial dnergie and BMO Aggregate 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 BMO Aggregate Bond are associated (or correlated) with RBC Mondial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC mondial dnergie has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and RBC Mondial go up and down completely randomly.
Pair Corralation between BMO Aggregate and RBC Mondial
Assuming the 90 days trading horizon BMO Aggregate is expected to generate 4.11 times less return on investment than RBC Mondial. But when comparing it to its historical volatility, BMO Aggregate Bond is 2.7 times less risky than RBC Mondial. It trades about 0.14 of its potential returns per unit of risk. RBC mondial dnergie is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,666 in RBC mondial dnergie on November 5, 2024 and sell it today you would earn a total of 195.00 from holding RBC mondial dnergie or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BMO Aggregate Bond vs. RBC mondial dnergie
Performance |
| Timeline |
| BMO Aggregate Bond |
| RBC mondial dnergie |
BMO Aggregate and RBC Mondial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Aggregate and RBC Mondial
The main advantage of trading using opposite BMO Aggregate and RBC Mondial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate position performs unexpectedly, RBC Mondial 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 Mondial will offset losses from the drop in RBC Mondial's long position.| BMO Aggregate vs. BMO Short Term Bond | BMO Aggregate vs. BMO Canadian Bank | BMO Aggregate vs. BMO Aggregate Bond | BMO Aggregate vs. BMO Balanced ETF |
| RBC Mondial vs. Fidelity Global Equity | RBC Mondial vs. Tangerine Equity Growth | RBC Mondial vs. PHN Canadian Equity | RBC Mondial vs. Manulife Global Equity |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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