Correlation Between BetaPro Natural and RBC Canadian
Can any of the company-specific risk be diversified away by investing in both BetaPro Natural 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 BetaPro Natural and RBC Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Natural Gas and RBC Canadian Bank, you can compare the effects of market volatilities on BetaPro Natural 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 BetaPro Natural with a short position of RBC Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Natural and RBC Canadian.
Diversification Opportunities for BetaPro Natural and RBC Canadian
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and RBC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Natural Gas 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 BetaPro Natural 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 BetaPro Natural Gas 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 BetaPro Natural i.e., BetaPro Natural and RBC Canadian go up and down completely randomly.
Pair Corralation between BetaPro Natural and RBC Canadian
Assuming the 90 days trading horizon BetaPro Natural Gas is expected to under-perform the RBC Canadian. In addition to that, BetaPro Natural is 7.33 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 0.34 per unit of volatility. If you would invest 3,178 in RBC Canadian Bank on August 16, 2025 and sell it today you would earn a total of 488.00 from holding RBC Canadian Bank or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro Natural Gas vs. RBC Canadian Bank
Performance |
| Timeline |
| BetaPro Natural Gas |
| RBC Canadian Bank |
BetaPro Natural and RBC Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Natural and RBC Canadian
The main advantage of trading using opposite BetaPro Natural and RBC Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Natural 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.| BetaPro Natural vs. BetaPro Crude Oil | BetaPro Natural vs. BetaPro Crude Oil | BetaPro Natural vs. Global X Active | BetaPro Natural vs. Harvest Equal Weight |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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