Correlation Between Evolve Canadian and Canadian High

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

By analyzing existing cross correlation between Evolve Canadian Aggregate and Canadian High Income, you can compare the effects of market volatilities on Evolve Canadian and Canadian High 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 Evolve Canadian with a short position of Canadian High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolve Canadian and Canadian High.

Diversification Opportunities for Evolve Canadian and Canadian High

0.0

Correlation Coefficient

Evolve Canadian  Canadian High

Pay attention - limited upside

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

Pair Corralation between Evolve Canadian and Canadian High

If you would invest  700.00  in Canadian High Income on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Canadian High Income or generate 0.0% return on investment over 90 days.

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

Evolve Canadian Aggregate  vs.  Canadian High Income

Evolve Canadian Aggregate

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Canadian Aggregate are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy technical and fundamental indicators, Evolve Canadian is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Canadian High Income

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Evolve Canadian and Canadian High

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

The idea behind Evolve Canadian Aggregate and Canadian High Income 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.