Correlation Between SPTSX Dividend and Bank of Montreal
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Bank of Montreal, you can compare the effects of market volatilities on SPTSX Dividend and Bank of Montreal 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 Bank of Montreal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Bank of Montreal.
Diversification Opportunities for SPTSX Dividend and Bank of Montreal
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Bank is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Bank of Montreal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Montreal 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 Bank of Montreal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Montreal has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Bank of Montreal go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Bank of Montreal
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.09 times less return on investment than Bank of Montreal. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.45 times less risky than Bank of Montreal. It trades about 0.06 of its potential returns per unit of risk. Bank of Montreal is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,701 in Bank of Montreal on September 3, 2024 and sell it today you would earn a total of 798.00 from holding Bank of Montreal or generate 46.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.74% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Bank of Montreal
Performance |
| Timeline |
SPTSX Dividend and Bank of Montreal Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Bank of Montreal
Pair trading matchups for Bank of Montreal
Pair Trading with SPTSX Dividend and Bank of Montreal
The main advantage of trading using opposite SPTSX Dividend and Bank of Montreal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Bank of Montreal 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 Bank of Montreal will offset losses from the drop in Bank of Montreal's long position.| SPTSX Dividend vs. 2028 Investment Grade | SPTSX Dividend vs. Upstart Investments | SPTSX Dividend vs. Brookfield Investments | SPTSX Dividend vs. Atrium Mortgage Investment |
| Bank of Montreal vs. Atrium Mortgage Investment | Bank of Montreal vs. Canadian General Investments | Bank of Montreal vs. Bip Investment Corp | Bank of Montreal vs. TGS Esports |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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