Correlation Between Exemplar Growth and RBC Canadian
Can any of the company-specific risk be diversified away by investing in both Exemplar Growth and RBC Canadian 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 Exemplar Growth and RBC Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exemplar Growth and and RBC Canadian Bank, you can compare the effects of market volatilities on Exemplar Growth and RBC Canadian 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 Exemplar Growth with a short position of RBC Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exemplar Growth and RBC Canadian.
Diversification Opportunities for Exemplar Growth and RBC Canadian
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exemplar and RBC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Exemplar Growth and and RBC Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Canadian Bank and Exemplar Growth 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 Exemplar Growth and are associated (or correlated) with RBC Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Canadian Bank has no effect on the direction of Exemplar Growth i.e., Exemplar Growth and RBC Canadian go up and down completely randomly.
Pair Corralation between Exemplar Growth and RBC Canadian
Assuming the 90 days trading horizon Exemplar Growth is expected to generate 1.87 times less return on investment than RBC Canadian. In addition to that, Exemplar Growth is 1.49 times more volatile than RBC Canadian Bank. It trades about 0.12 of its total potential returns per unit of risk. RBC Canadian Bank is currently generating about 0.33 per unit of volatility. If you would invest 3,182 in RBC Canadian Bank on August 15, 2025 and sell it today you would earn a total of 484.00 from holding RBC Canadian Bank or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Exemplar Growth and vs. RBC Canadian Bank
Performance |
| Timeline |
| Exemplar Growth |
| RBC Canadian Bank |
Exemplar Growth and RBC Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exemplar Growth and RBC Canadian
The main advantage of trading using opposite Exemplar Growth and RBC Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exemplar Growth position performs unexpectedly, RBC Canadian 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 Canadian will offset losses from the drop in RBC Canadian's long position.| Exemplar Growth vs. TD Active Preferred | Exemplar Growth vs. iShares SP Mid Cap | Exemplar Growth vs. Harvest Equal Weight | Exemplar Growth vs. iShares SPTSX Completion |
| RBC Canadian vs. CI Canadian Banks | RBC Canadian vs. AGFiQ Market Neutral | RBC Canadian vs. iShares MSCI Canada | RBC Canadian vs. Hamilton Gold Producer |
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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