Correlation Between BMO Aggregate and Jaxon Mining
Can any of the company-specific risk be diversified away by investing in both BMO Aggregate and Jaxon Mining 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 Jaxon Mining 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 Jaxon Mining, you can compare the effects of market volatilities on BMO Aggregate and Jaxon Mining 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 Jaxon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Aggregate and Jaxon Mining.
Diversification Opportunities for BMO Aggregate and Jaxon Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BMO and Jaxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BMO Aggregate Bond and Jaxon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaxon 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 Jaxon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaxon Mining has no effect on the direction of BMO Aggregate i.e., BMO Aggregate and Jaxon Mining go up and down completely randomly.
Pair Corralation between BMO Aggregate and Jaxon Mining
If you would invest 2,979 in BMO Aggregate Bond on November 3, 2024 and sell it today you would earn a total of 19.00 from holding BMO Aggregate Bond or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Aggregate Bond vs. Jaxon Mining
Performance |
| Timeline |
| BMO Aggregate Bond |
| Jaxon Mining |
BMO Aggregate and Jaxon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Aggregate and Jaxon Mining
The main advantage of trading using opposite BMO Aggregate and Jaxon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Aggregate position performs unexpectedly, Jaxon Mining 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 Jaxon Mining will offset losses from the drop in Jaxon Mining'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 |
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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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