Correlation Between BMO Global and RBC Quant
Can any of the company-specific risk be diversified away by investing in both BMO Global 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 BMO Global and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BMO Global Communications and RBC Quant EAFE, you can compare the effects of market volatilities on BMO Global 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 BMO Global with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Global and RBC Quant.
Diversification Opportunities for BMO Global and RBC Quant
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BMO and RBC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BMO Global Communications and RBC Quant EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant EAFE and BMO Global 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 Global Communications 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 EAFE has no effect on the direction of BMO Global i.e., BMO Global and RBC Quant go up and down completely randomly.
Pair Corralation between BMO Global and RBC Quant
Assuming the 90 days trading horizon BMO Global Communications is expected to under-perform the RBC Quant. In addition to that, BMO Global is 1.12 times more volatile than RBC Quant EAFE. It trades about -0.1 of its total potential returns per unit of risk. RBC Quant EAFE is currently generating about 0.31 per unit of volatility. If you would invest 3,495 in RBC Quant EAFE on November 18, 2025 and sell it today you would earn a total of 441.00 from holding RBC Quant EAFE or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Global Communications vs. RBC Quant EAFE
Performance |
| Timeline |
| BMO Global Communications |
| RBC Quant EAFE |
BMO Global and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Global and RBC Quant
The main advantage of trading using opposite BMO Global and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Global 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.| BMO Global vs. iShares SPTSX Capped | BMO Global vs. iShares MSCI Canada | BMO Global vs. Hamilton Energy YIELD | BMO Global vs. Hamilton Gold Producer |
| RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard FTSE Developed | RBC Quant vs. Vanguard Conservative ETF |
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 Stocks Directory module to find actively traded stocks across global markets.
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