Correlation Between SPTSX Dividend and BCE
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BCE Inc Pref, you can compare the effects of market volatilities on SPTSX Dividend and BCE 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 BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BCE.
Diversification Opportunities for SPTSX Dividend and BCE
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPTSX and BCE is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BCE Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc Pref 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 BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc Pref has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BCE go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BCE
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the BCE. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 1.83 times less risky than BCE. The index trades about -0.1 of its potential returns per unit of risk. The BCE Inc Pref is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,544 in BCE Inc Pref on September 15, 2024 and sell it today you would earn a total of 73.00 from holding BCE Inc Pref or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BCE Inc Pref
Performance |
| Timeline |
SPTSX Dividend and BCE Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BCE Inc Pref
Pair trading matchups for BCE
Pair Trading with SPTSX Dividend and BCE
The main advantage of trading using opposite SPTSX Dividend and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.| SPTSX Dividend vs. Olympia Financial Group | SPTSX Dividend vs. Computer Modelling Group | SPTSX Dividend vs. iA Financial | SPTSX Dividend vs. Canadian Imperial Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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