Correlation Between Purpose Global and RBC Target
Can any of the company-specific risk be diversified away by investing in both Purpose Global and RBC Target 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 Purpose Global and RBC Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Purpose Global Bond and RBC Target 2027, you can compare the effects of market volatilities on Purpose Global and RBC Target 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 Purpose Global with a short position of RBC Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purpose Global and RBC Target.
Diversification Opportunities for Purpose Global and RBC Target
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Purpose and RBC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Purpose Global Bond and RBC Target 2027 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Target 2027 and Purpose 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 Purpose Global Bond are associated (or correlated) with RBC Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Target 2027 has no effect on the direction of Purpose Global i.e., Purpose Global and RBC Target go up and down completely randomly.
Pair Corralation between Purpose Global and RBC Target
Assuming the 90 days trading horizon Purpose Global is expected to generate 1.63 times less return on investment than RBC Target. In addition to that, Purpose Global is 1.65 times more volatile than RBC Target 2027. It trades about 0.02 of its total potential returns per unit of risk. RBC Target 2027 is currently generating about 0.05 per unit of volatility. If you would invest 1,833 in RBC Target 2027 on October 30, 2025 and sell it today you would earn a total of 5.00 from holding RBC Target 2027 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Purpose Global Bond vs. RBC Target 2027
Performance |
| Timeline |
| Purpose Global Bond |
| RBC Target 2027 |
Purpose Global and RBC Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Purpose Global and RBC Target
The main advantage of trading using opposite Purpose Global and RBC Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Purpose Global position performs unexpectedly, RBC Target 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 Target will offset losses from the drop in RBC Target's long position.| Purpose Global vs. RBC Target 2026 | Purpose Global vs. iShares High Yield | Purpose Global vs. RBC Target 2027 | Purpose Global vs. iShares Core Canadian |
| RBC Target vs. RBC Target 2026 | RBC Target vs. BMO Discount Bond | RBC Target vs. Purpose Global Bond | RBC Target vs. BMO Mid Federal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |