Correlation Between SPTSX Dividend and CIBC Active
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CIBC Active Investment, you can compare the effects of market volatilities on SPTSX Dividend and CIBC Active 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 CIBC Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CIBC Active.
Diversification Opportunities for SPTSX Dividend and CIBC Active
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and CIBC is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CIBC Active Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Active Investment 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 CIBC Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Active Investment has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CIBC Active go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CIBC Active
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 3.76 times more return on investment than CIBC Active. However, SPTSX Dividend is 3.76 times more volatile than CIBC Active Investment. It trades about 0.42 of its potential returns per unit of risk. CIBC Active Investment is currently generating about 0.2 per unit of risk. If you would invest 36,294 in SPTSX Dividend Aristocrats on September 1, 2024 and sell it today you would earn a total of 1,277 from holding SPTSX Dividend Aristocrats or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. CIBC Active Investment
Performance |
| Timeline |
SPTSX Dividend and CIBC Active Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CIBC Active Investment
Pair trading matchups for CIBC Active
Pair Trading with SPTSX Dividend and CIBC Active
The main advantage of trading using opposite SPTSX Dividend and CIBC Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CIBC Active 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 CIBC Active will offset losses from the drop in CIBC Active's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| CIBC Active vs. CIBC Active Investment | CIBC Active vs. CIBC Flexible Yield | CIBC Active vs. CIBC Core Fixed | CIBC Active vs. Brompton Flaherty Crumrine |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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