Correlation Between SPTSX Dividend and Air Canada
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Air Canada, you can compare the effects of market volatilities on SPTSX Dividend and Air Canada 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 Air Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Air Canada.
Diversification Opportunities for SPTSX Dividend and Air Canada
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Air is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Air Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Canada 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 Air Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Canada has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Air Canada go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Air Canada
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.43 times more return on investment than Air Canada. However, SPTSX Dividend Aristocrats is 2.33 times less risky than Air Canada. It trades about 0.03 of its potential returns per unit of risk. Air Canada is currently generating about -0.43 per unit of risk. If you would invest 35,938 in SPTSX Dividend Aristocrats on October 31, 2024 and sell it today you would earn a total of 103.00 from holding SPTSX Dividend Aristocrats or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Air Canada
Performance |
| Timeline |
SPTSX Dividend and Air Canada Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Air Canada
Pair trading matchups for Air Canada
Pair Trading with SPTSX Dividend and Air Canada
The main advantage of trading using opposite SPTSX Dividend and Air Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Air Canada 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 Air Canada will offset losses from the drop in Air Canada's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. Micron Technology, | SPTSX Dividend vs. Constellation Software | SPTSX Dividend vs. XXIX Metal Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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