Correlation Between RBC Portefeuille and CI Synergy

Can any of the company-specific risk be diversified away by investing in both RBC Portefeuille and CI Synergy 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 Portefeuille and CI Synergy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RBC Portefeuille de and CI Synergy American, you can compare the effects of market volatilities on RBC Portefeuille and CI Synergy 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 Portefeuille with a short position of CI Synergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Portefeuille and CI Synergy.

Diversification Opportunities for RBC Portefeuille and CI Synergy

-0.11

Correlation Coefficient

RBC Portefeuille  CI Synergy

Good diversification

The 3 months correlation between RBC and 0P000075Q1 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding RBC Portefeuille de and CI Synergy American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Synergy American and RBC Portefeuille 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 Portefeuille de are associated (or correlated) with CI Synergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Synergy American has no effect on the direction of RBC Portefeuille i.e., RBC Portefeuille and CI Synergy go up and down completely randomly.

Pair Corralation between RBC Portefeuille and CI Synergy

Assuming the 90 days trading horizon RBC Portefeuille de is expected to under-perform the CI Synergy. But the fund apears to be less risky and, when comparing its historical volatility, RBC Portefeuille de is 1.49 times less risky than CI Synergy. The fund trades about -0.02 of its potential returns per unit of risk. The CI Synergy American is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  4,016  in CI Synergy American on October 27, 2024 and sell it today you would earn a total of  263.00  from holding CI Synergy American or generate 6.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

RBC Portefeuille de  vs.  CI Synergy American

RBC Portefeuille

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RBC Portefeuille de has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, RBC Portefeuille is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CI Synergy American

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CI Synergy American are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating basic indicators, CI Synergy may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with RBC Portefeuille and CI Synergy

The main advantage of trading using opposite RBC Portefeuille and CI Synergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Portefeuille position performs unexpectedly, CI Synergy 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 CI Synergy will offset losses from the drop in CI Synergy's long position.

The idea behind RBC Portefeuille de and CI Synergy American pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.