Correlation Between SPTSX Dividend and CI Global
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CI Global Alpha, you can compare the effects of market volatilities on SPTSX Dividend and CI Global 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 SPTSX Dividend with a short position of CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CI Global.
Diversification Opportunities for SPTSX Dividend and CI Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and 0P000070HA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CI Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Alpha and SPTSX 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 SPTSX Dividend Aristocrats are associated (or correlated) with CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Alpha has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CI Global go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CI Global
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.4 times less return on investment than CI Global. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.06 times less risky than CI Global. It trades about 0.1 of its potential returns per unit of risk. CI Global Alpha is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,256 in CI Global Alpha on August 26, 2024 and sell it today you would earn a total of 4,035 from holding CI Global Alpha or generate 64.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.1% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. CI Global Alpha
Performance |
| Timeline |
SPTSX Dividend and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CI Global Alpha
Pair trading matchups for CI Global
Pair Trading with SPTSX Dividend and CI Global
The main advantage of trading using opposite SPTSX Dividend and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.| SPTSX Dividend vs. Contagious Gaming | SPTSX Dividend vs. Gamehost | SPTSX Dividend vs. Ramp Metals | SPTSX Dividend vs. Air Canada |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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