Correlation Between Mackenzie Canadian and First Asset
Can any of the company-specific risk be diversified away by investing in both Mackenzie Canadian and First Asset 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 Mackenzie Canadian and First Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Canadian Equity and First Asset Morningstar, you can compare the effects of market volatilities on Mackenzie Canadian and First Asset 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 Mackenzie Canadian with a short position of First Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Canadian and First Asset.
Diversification Opportunities for Mackenzie Canadian and First Asset
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mackenzie and First is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Canadian Equity and First Asset Morningstar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Asset Morningstar and Mackenzie Canadian 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 Mackenzie Canadian Equity are associated (or correlated) with First Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Asset Morningstar has no effect on the direction of Mackenzie Canadian i.e., Mackenzie Canadian and First Asset go up and down completely randomly.
Pair Corralation between Mackenzie Canadian and First Asset
Assuming the 90 days trading horizon Mackenzie Canadian Equity is expected to generate 0.88 times more return on investment than First Asset. However, Mackenzie Canadian Equity is 1.14 times less risky than First Asset. It trades about 0.29 of its potential returns per unit of risk. First Asset Morningstar is currently generating about 0.23 per unit of risk. If you would invest 19,182 in Mackenzie Canadian Equity on October 11, 2025 and sell it today you would earn a total of 581.00 from holding Mackenzie Canadian Equity or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Canadian Equity vs. First Asset Morningstar
Performance |
| Timeline |
| Mackenzie Canadian Equity |
| First Asset Morningstar |
Mackenzie Canadian and First Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Canadian and First Asset
The main advantage of trading using opposite Mackenzie Canadian and First Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Canadian position performs unexpectedly, First Asset 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 First Asset will offset losses from the drop in First Asset's long position.| Mackenzie Canadian vs. Vanguard FTSE Canada | Mackenzie Canadian vs. iShares SPTSX Composite | Mackenzie Canadian vs. Vanguard FTSE Global | Mackenzie Canadian vs. iShares Core Balanced |
| First Asset vs. CI Canada Quality | First Asset vs. Hamilton Enhanced Canadian | First Asset vs. First Asset Tech | First Asset vs. Evolve Canadian Banks |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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