Correlation Between SPASX Dividend and Xref
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and Xref 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 SPASX Dividend and Xref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and Xref, you can compare the effects of market volatilities on SPASX Dividend and Xref 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 SPASX Dividend with a short position of Xref. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Xref.
Diversification Opportunities for SPASX Dividend and Xref
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPASX and Xref is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and Xref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xref and SPASX Dividend 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 SPASX Dividend Opportunities are associated (or correlated) with Xref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xref has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and Xref go up and down completely randomly.
Pair Corralation between SPASX Dividend and Xref
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.33 times more return on investment than Xref. However, SPASX Dividend Opportunities is 2.99 times less risky than Xref. It trades about 0.08 of its potential returns per unit of risk. Xref is currently generating about 0.01 per unit of risk. If you would invest 167,600 in SPASX Dividend Opportunities on August 30, 2024 and sell it today you would earn a total of 2,040 from holding SPASX Dividend Opportunities or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Xref
Performance |
| Timeline |
SPASX Dividend and Xref Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Xref
Pair trading matchups for Xref
Pair Trading with SPASX Dividend and Xref
The main advantage of trading using opposite SPASX Dividend and Xref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, Xref 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 Xref will offset losses from the drop in Xref's long position.| SPASX Dividend vs. The Environmental Group | SPASX Dividend vs. DY6 Metals | SPASX Dividend vs. Tombador Iron | SPASX Dividend vs. American West Metals |
| Xref vs. Saferoads Holdings | Xref vs. ARN Media Limited | Xref vs. Mount Gibson Iron | Xref vs. Champion Iron |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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