Correlation Between SPTSX Dividend and Alimentation Couchen
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Alimentation Couchen Tard, you can compare the effects of market volatilities on SPTSX Dividend and Alimentation Couchen 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 Alimentation Couchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Alimentation Couchen.
Diversification Opportunities for SPTSX Dividend and Alimentation Couchen
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPTSX and Alimentation is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Alimentation Couchen Tard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimentation Couchen Tard 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 Alimentation Couchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimentation Couchen Tard has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Alimentation Couchen go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Alimentation Couchen
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.56 times less return on investment than Alimentation Couchen. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.01 times less risky than Alimentation Couchen. It trades about 0.07 of its potential returns per unit of risk. Alimentation Couchen Tard is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,098 in Alimentation Couchen Tard on August 30, 2024 and sell it today you would earn a total of 2,149 from holding Alimentation Couchen Tard or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Alimentation Couchen Tard
Performance |
| Timeline |
SPTSX Dividend and Alimentation Couchen Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Alimentation Couchen Tard
Pair trading matchups for Alimentation Couchen
Pair Trading with SPTSX Dividend and Alimentation Couchen
The main advantage of trading using opposite SPTSX Dividend and Alimentation Couchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Alimentation Couchen 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 Alimentation Couchen will offset losses from the drop in Alimentation Couchen's long position.| SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. Firan Technology Group | SPTSX Dividend vs. Computer Modelling Group | SPTSX Dividend vs. Northstar Clean Technologies |
| Alimentation Couchen vs. Eros Resources Corp | Alimentation Couchen vs. Apple Inc CDR | Alimentation Couchen vs. European Residential Real | Alimentation Couchen vs. Canadian Utilities Ltd |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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