Correlation Between Vanguard Retirement and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Vanguard Retirement and RBC Quant 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 Vanguard Retirement and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Retirement Income and RBC Quant Canadian, you can compare the effects of market volatilities on Vanguard Retirement and RBC Quant 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 Vanguard Retirement with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Retirement and RBC Quant.
Diversification Opportunities for Vanguard Retirement and RBC Quant
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanguard and RBC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Retirement Income and RBC Quant Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Canadian and Vanguard Retirement 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 Vanguard Retirement Income are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant Canadian has no effect on the direction of Vanguard Retirement i.e., Vanguard Retirement and RBC Quant go up and down completely randomly.
Pair Corralation between Vanguard Retirement and RBC Quant
Assuming the 90 days trading horizon Vanguard Retirement is expected to generate 1.72 times less return on investment than RBC Quant. But when comparing it to its historical volatility, Vanguard Retirement Income is 4.7 times less risky than RBC Quant. It trades about 0.08 of its potential returns per unit of risk. RBC Quant Canadian is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,853 in RBC Quant Canadian on October 28, 2025 and sell it today you would earn a total of 63.00 from holding RBC Quant Canadian or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Retirement Income vs. RBC Quant Canadian
Performance |
| Timeline |
| Vanguard Retirement |
| RBC Quant Canadian |
Vanguard Retirement and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Retirement and RBC Quant
The main advantage of trading using opposite Vanguard Retirement and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Retirement position performs unexpectedly, RBC Quant 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 Quant will offset losses from the drop in RBC Quant's long position.| Vanguard Retirement vs. Vanguard Conservative Income | Vanguard Retirement vs. iShares ESG Aware | Vanguard Retirement vs. iShares Core Conservative | Vanguard Retirement vs. iShares Equal Weight |
| RBC Quant vs. RBC Quant Dividend | RBC Quant vs. RBC Quant Dividend | RBC Quant vs. Fidelity Canadian High | RBC Quant vs. iShares MSCI Europe |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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