Correlation Between SPTSX Dividend and Aurora Royalties
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Aurora Royalties, you can compare the effects of market volatilities on SPTSX Dividend and Aurora Royalties 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 Aurora Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Aurora Royalties.
Diversification Opportunities for SPTSX Dividend and Aurora Royalties
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Aurora is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Aurora Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Royalties 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 Aurora Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Royalties has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Aurora Royalties go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Aurora Royalties
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 16.19 times less return on investment than Aurora Royalties. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 15.5 times less risky than Aurora Royalties. It trades about 0.2 of its potential returns per unit of risk. Aurora Royalties is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Aurora Royalties on August 31, 2024 and sell it today you would earn a total of 0.50 from holding Aurora Royalties or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Aurora Royalties
Performance |
| Timeline |
SPTSX Dividend and Aurora Royalties Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Aurora Royalties
Pair trading matchups for Aurora Royalties
Pair Trading with SPTSX Dividend and Aurora Royalties
The main advantage of trading using opposite SPTSX Dividend and Aurora Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Aurora Royalties 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 Aurora Royalties will offset losses from the drop in Aurora Royalties' long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
| Aurora Royalties vs. Caribbean Utilities | Aurora Royalties vs. Contagious Gaming | Aurora Royalties vs. Doman Building Materials | Aurora Royalties vs. Renoworks Software |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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