Correlation Between SPTSX Dividend and CAE
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CAE Inc, you can compare the effects of market volatilities on SPTSX Dividend and CAE 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 CAE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CAE.
Diversification Opportunities for SPTSX Dividend and CAE
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and CAE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CAE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAE Inc 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 CAE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAE Inc has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CAE go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CAE
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the CAE. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 5.68 times less risky than CAE. The index trades about -0.04 of its potential returns per unit of risk. The CAE Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,492 in CAE Inc on November 28, 2024 and sell it today you would earn a total of 90.00 from holding CAE Inc or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. CAE Inc
Performance |
| Timeline |
SPTSX Dividend and CAE Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CAE Inc
Pair trading matchups for CAE
Pair Trading with SPTSX Dividend and CAE
The main advantage of trading using opposite SPTSX Dividend and CAE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CAE 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 CAE will offset losses from the drop in CAE's long position.| SPTSX Dividend vs. CVW CleanTech | SPTSX Dividend vs. GoldQuest Mining Corp | SPTSX Dividend vs. Pace Metals | SPTSX Dividend vs. Americas Silver Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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