Correlation Between SPTSX Dividend and CDSPI Petite
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CDSPI petite cap, you can compare the effects of market volatilities on SPTSX Dividend and CDSPI Petite 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 CDSPI Petite. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CDSPI Petite.
Diversification Opportunities for SPTSX Dividend and CDSPI Petite
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPTSX and CDSPI is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CDSPI petite cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDSPI petite cap 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 CDSPI Petite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDSPI petite cap has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CDSPI Petite go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CDSPI Petite
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.51 times less return on investment than CDSPI Petite. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.78 times less risky than CDSPI Petite. It trades about 0.14 of its potential returns per unit of risk. CDSPI petite cap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,971 in CDSPI petite cap on October 25, 2024 and sell it today you would earn a total of 2,362 from holding CDSPI petite cap or generate 47.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. CDSPI petite cap
Performance |
| Timeline |
SPTSX Dividend and CDSPI Petite Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CDSPI petite cap
Pair trading matchups for CDSPI Petite
Pair Trading with SPTSX Dividend and CDSPI Petite
The main advantage of trading using opposite SPTSX Dividend and CDSPI Petite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CDSPI Petite 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 CDSPI Petite will offset losses from the drop in CDSPI Petite's long position.| SPTSX Dividend vs. Canso Credit Trust | SPTSX Dividend vs. NextSource Materials | SPTSX Dividend vs. Overactive Media Corp | SPTSX Dividend vs. Diamond Estates Wines |
| CDSPI Petite vs. CDSPI Common Stock | CDSPI Petite vs. CDSPI Dividend | CDSPI Petite vs. CDSPI Balanced Value | CDSPI Petite vs. CDSPI SP 500 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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