Correlation Between BMO Aggregate and Cardiol Therapeutics
Can any of the company-specific risk be diversified away by investing in both BMO Aggregate and Cardiol Therapeutics 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 BMO Aggregate and Cardiol Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BMO Aggregate Bond and Cardiol Therapeutics Class, you can compare the effects of market volatilities on BMO Aggregate and Cardiol Therapeutics 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 Cardiol Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and Cardiol Therapeutics.
Diversification Opportunities for BMO Aggregate and Cardiol Therapeutics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BMO and Cardiol is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and Cardiol Therapeutics Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiol Therapeutics 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 Cardiol Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiol Therapeutics has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and Cardiol Therapeutics go up and down completely randomly.
Pair Corralation between BMO Aggregate and Cardiol Therapeutics
Assuming the 90 days trading horizon BMO Aggregate Bond is expected to generate 0.05 times more return on investment than Cardiol Therapeutics. However, BMO Aggregate Bond is 20.17 times less risky than Cardiol Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Cardiol Therapeutics Class is currently generating about 0.0 per unit of risk. If you would invest 2,980 in BMO Aggregate Bond on November 18, 2024 and sell it today you would earn a total of 29.00 from holding BMO Aggregate Bond or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Aggregate Bond vs. Cardiol Therapeutics Class
Performance |
| Timeline |
| BMO Aggregate Bond |
| Cardiol Therapeutics |
BMO Aggregate and Cardiol Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Aggregate and Cardiol Therapeutics
The main advantage of trading using opposite BMO Aggregate and Cardiol Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate position performs unexpectedly, Cardiol Therapeutics 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 Cardiol Therapeutics will offset losses from the drop in Cardiol Therapeutics' 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 |
| Cardiol Therapeutics vs. Medipharm Labs Corp | Cardiol Therapeutics vs. Avicanna | Cardiol Therapeutics vs. Medicenna Therapeutics Corp | Cardiol Therapeutics vs. Charlottes Web Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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