Correlation Between Rbc Bluebay and Sound Shore
Can any of the company-specific risk be diversified away by investing in both Rbc Bluebay and Sound Shore 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 Bluebay and Sound Shore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Bluebay Global and Sound Shore Fund, you can compare the effects of market volatilities on Rbc Bluebay and Sound Shore 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 Bluebay with a short position of Sound Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Bluebay and Sound Shore.
Diversification Opportunities for Rbc Bluebay and Sound Shore
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rbc and Sound is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Bluebay Global and Sound Shore Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sound Shore Fund and Rbc Bluebay 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 Bluebay Global are associated (or correlated) with Sound Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sound Shore Fund has no effect on the direction of Rbc Bluebay i.e., Rbc Bluebay and Sound Shore go up and down completely randomly.
Pair Corralation between Rbc Bluebay and Sound Shore
Assuming the 90 days horizon Rbc Bluebay is expected to generate 2.84 times less return on investment than Sound Shore. But when comparing it to its historical volatility, Rbc Bluebay Global is 4.59 times less risky than Sound Shore. It trades about 0.51 of its potential returns per unit of risk. Sound Shore Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,876 in Sound Shore Fund on June 10, 2025 and sell it today you would earn a total of 176.00 from holding Sound Shore Fund or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rbc Bluebay Global vs. Sound Shore Fund
Performance |
| Timeline |
| Rbc Bluebay Global |
| Sound Shore Fund |
Rbc Bluebay and Sound Shore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Bluebay and Sound Shore
The main advantage of trading using opposite Rbc Bluebay and Sound Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Bluebay position performs unexpectedly, Sound Shore 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 Sound Shore will offset losses from the drop in Sound Shore's long position.| Rbc Bluebay vs. Jpmorgan Income Fund | Rbc Bluebay vs. Prudential High Yield | Rbc Bluebay vs. Parametric Modity Strategy | Rbc Bluebay vs. Prudential Floating Rate |
| Sound Shore vs. Lord Abbett Convertible | Sound Shore vs. Allianzgi Convertible Income | Sound Shore vs. Fidelity Sai Convertible | Sound Shore vs. Gabelli Convertible And |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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