Correlation Between RBC Global and RBC Mondial

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

By analyzing existing cross correlation between RBC Global Technology and RBC mondial dnergie, you can compare the effects of market volatilities on RBC Global and RBC Mondial 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 Global with a short position of RBC Mondial. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Global and RBC Mondial.

Diversification Opportunities for RBC Global and RBC Mondial

0.0

Correlation Coefficient

RBC Global  RBC Mondial

Pay attention - limited upside

The 3 months correlation between RBC and RBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RBC Global Technology and RBC mondial dnergie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC mondial dnergie and RBC Global 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 Global Technology are associated (or correlated) with RBC Mondial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC mondial dnergie has no effect on the direction of RBC Global i.e., RBC Global and RBC Mondial go up and down completely randomly.

Pair Corralation between RBC Global and RBC Mondial

Assuming the 90 days trading horizon RBC Global Technology is expected to under-perform the RBC Mondial. In addition to that, RBC Global is 1.39 times more volatile than RBC mondial dnergie. It trades about -0.09 of its total potential returns per unit of risk. RBC mondial dnergie is currently generating about 0.14 per unit of volatility. If you would invest  5,483  in RBC mondial dnergie on December 27, 2024 and sell it today you would earn a total of  509.00  from holding RBC mondial dnergie or generate 9.28% return on investment over 90 days.

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

RBC Global Technology  vs.  RBC mondial dnergie

RBC Global Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days RBC Global Technology has generated negative risk-adjusted returns adding no value to fund investors. Despite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

RBC mondial dnergie

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RBC mondial dnergie are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, RBC Mondial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with RBC Global and RBC Mondial

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

The idea behind RBC Global Technology and RBC mondial dnergie 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.