Correlation Between RBC Canadian and Exemplar Growth
Can any of the company-specific risk be diversified away by investing in both RBC Canadian and Exemplar Growth 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 RBC Canadian and Exemplar Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Canadian Bank and Exemplar Growth and, you can compare the effects of market volatilities on RBC Canadian and Exemplar Growth 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 RBC Canadian with a short position of Exemplar Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Canadian and Exemplar Growth.
Diversification Opportunities for RBC Canadian and Exemplar Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RBC and Exemplar is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding RBC Canadian Bank and Exemplar Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exemplar Growth and RBC 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 RBC Canadian Bank are associated (or correlated) with Exemplar Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exemplar Growth has no effect on the direction of RBC Canadian i.e., RBC Canadian and Exemplar Growth go up and down completely randomly.
Pair Corralation between RBC Canadian and Exemplar Growth
Assuming the 90 days trading horizon RBC Canadian Bank is expected to generate 0.56 times more return on investment than Exemplar Growth. However, RBC Canadian Bank is 1.78 times less risky than Exemplar Growth. It trades about 0.32 of its potential returns per unit of risk. Exemplar Growth and is currently generating about 0.13 per unit of risk. If you would invest 3,329 in RBC Canadian Bank on August 31, 2025 and sell it today you would earn a total of 413.00 from holding RBC Canadian Bank or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Canadian Bank vs. Exemplar Growth and
Performance |
| Timeline |
| RBC Canadian Bank |
| Exemplar Growth |
RBC Canadian and Exemplar Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Canadian and Exemplar Growth
The main advantage of trading using opposite RBC Canadian and Exemplar Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Canadian position performs unexpectedly, Exemplar Growth 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 Exemplar Growth will offset losses from the drop in Exemplar Growth's long position.| RBC Canadian vs. RBC Target 2029 | RBC Canadian vs. RBC Quant Dividend | RBC Canadian vs. RBC Quant EAFE | RBC Canadian vs. RBC Quant European |
| Exemplar Growth vs. NBI High Yield | Exemplar Growth vs. NBI Unconstrained Fixed | Exemplar Growth vs. Mackenzie Developed ex North | Exemplar Growth vs. BMO Short Term Bond |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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