Correlation Between BMO Aggregate and Dore Copper
Can any of the company-specific risk be diversified away by investing in both BMO Aggregate and Dore Copper 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 Dore Copper 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 Dore Copper Mining, you can compare the effects of market volatilities on BMO Aggregate and Dore Copper 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 Dore Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and Dore Copper.
Diversification Opportunities for BMO Aggregate and Dore Copper
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BMO and Dore is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and Dore Copper Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dore Copper Mining 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 Dore Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dore Copper Mining has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and Dore Copper go up and down completely randomly.
Pair Corralation between BMO Aggregate and Dore Copper
Assuming the 90 days trading horizon BMO Aggregate Bond is expected to under-perform the Dore Copper. But the etf apears to be less risky and, when comparing its historical volatility, BMO Aggregate Bond is 19.51 times less risky than Dore Copper. The etf trades about -0.4 of its potential returns per unit of risk. The Dore Copper Mining is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Dore Copper Mining on October 9, 2024 and sell it today you would earn a total of 2.00 from holding Dore Copper Mining or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Aggregate Bond vs. Dore Copper Mining
Performance |
| Timeline |
| BMO Aggregate Bond |
| Dore Copper Mining |
BMO Aggregate and Dore Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Aggregate and Dore Copper
The main advantage of trading using opposite BMO Aggregate and Dore Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate position performs unexpectedly, Dore Copper 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 Dore Copper will offset losses from the drop in Dore Copper'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 |
| Dore Copper vs. QC Copper and | Dore Copper vs. Marimaca Copper Corp | Dore Copper vs. Northwest Copper Corp | Dore Copper vs. Chakana Copper Corp |
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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