Correlation Between BMO Short and Ether Fund
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By analyzing existing cross correlation between BMO Short Term Bond and Ether Fund, you can compare the effects of market volatilities on BMO Short and Ether Fund 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 BMO Short with a short position of Ether Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Short and Ether Fund.
Diversification Opportunities for BMO Short and Ether Fund
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BMO and Ether is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding BMO Short Term Bond and Ether Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ether Fund and BMO Short 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 BMO Short Term Bond are associated (or correlated) with Ether Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ether Fund has no effect on the direction of BMO Short i.e., BMO Short and Ether Fund go up and down completely randomly.
Pair Corralation between BMO Short and Ether Fund
Assuming the 90 days trading horizon BMO Short Term Bond is expected to generate 0.04 times more return on investment than Ether Fund. However, BMO Short Term Bond is 26.59 times less risky than Ether Fund. It trades about 0.15 of its potential returns per unit of risk. Ether Fund is currently generating about -0.15 per unit of risk. If you would invest 4,841 in BMO Short Term Bond on December 27, 2024 and sell it today you would earn a total of 72.00 from holding BMO Short Term Bond or generate 1.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BMO Short Term Bond vs. Ether Fund
Performance |
Timeline |
BMO Short Term |
Ether Fund |
BMO Short and Ether Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BMO Short and Ether Fund
The main advantage of trading using opposite BMO Short and Ether Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Short position performs unexpectedly, Ether Fund 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 Ether Fund will offset losses from the drop in Ether Fund's long position.BMO Short vs. BMO Corporate Bond | BMO Short vs. BMO Government Bond | BMO Short vs. BMO Ultra Short Term | BMO Short vs. BMO Short Term IG |
Ether Fund vs. Ether ETF CAD | Ether Fund vs. Ether Fund | Ether Fund vs. NBI High Yield | Ether Fund vs. NBI Unconstrained Fixed |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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