Correlation Between SPTSX Dividend and Autocanada
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Autocanada, you can compare the effects of market volatilities on SPTSX Dividend and Autocanada 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 Autocanada. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Autocanada.
Diversification Opportunities for SPTSX Dividend and Autocanada
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Autocanada is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Autocanada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocanada 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 Autocanada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocanada has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Autocanada go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Autocanada
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.19 times more return on investment than Autocanada. However, SPTSX Dividend Aristocrats is 5.18 times less risky than Autocanada. It trades about 0.07 of its potential returns per unit of risk. Autocanada is currently generating about -0.01 per unit of risk. If you would invest 30,385 in SPTSX Dividend Aristocrats on August 24, 2024 and sell it today you would earn a total of 6,923 from holding SPTSX Dividend Aristocrats or generate 22.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Autocanada
Performance |
| Timeline |
SPTSX Dividend and Autocanada Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Autocanada
Pair trading matchups for Autocanada
Pair Trading with SPTSX Dividend and Autocanada
The main advantage of trading using opposite SPTSX Dividend and Autocanada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Autocanada 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 Autocanada will offset losses from the drop in Autocanada's long position.| SPTSX Dividend vs. Diamond Estates Wines | SPTSX Dividend vs. Ocumetics Technology Corp | SPTSX Dividend vs. Mako Mining Corp | SPTSX Dividend vs. American Hotel Income |
| Autocanada vs. Martinrea International | Autocanada vs. Linamar | Autocanada vs. NFI Group | Autocanada vs. Element Fleet Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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