Correlation Between Mackenzie International and RBC Quant

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

By analyzing existing cross correlation between Mackenzie International Equity and RBC Quant European, you can compare the effects of market volatilities on Mackenzie International 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 Mackenzie International with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie International and RBC Quant.

Diversification Opportunities for Mackenzie International and RBC Quant

0.85

Correlation Coefficient

Mackenzie International  RBC Quant

Very poor diversification

The 3 months correlation between Mackenzie and RBC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie International Equity and RBC Quant European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant European and Mackenzie International 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 Mackenzie International Equity 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 European has no effect on the direction of Mackenzie International i.e., Mackenzie International and RBC Quant go up and down completely randomly.

Pair Corralation between Mackenzie International and RBC Quant

Assuming the 90 days trading horizon Mackenzie International Equity is expected to generate 0.55 times more return on investment than RBC Quant. However, Mackenzie International Equity is 1.81 times less risky than RBC Quant. It trades about 0.37 of its potential returns per unit of risk. RBC Quant European is currently generating about 0.16 per unit of risk. If you would invest  15,416  in Mackenzie International Equity on September 28, 2025 and sell it today you would earn a total of  318.00  from holding Mackenzie International Equity or generate 2.06% return on investment over 90 days.

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

Mackenzie International Equity  vs.  RBC Quant European

Mackenzie International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie International Equity are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Mackenzie International may actually be approaching a critical reversion point that can send shares even higher in January 2026.

RBC Quant European

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Quant European are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, RBC Quant may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Mackenzie International and RBC Quant

The main advantage of trading using opposite Mackenzie International and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie International 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.

The idea behind Mackenzie International Equity and RBC Quant European 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .