Correlation Between SPTSX Dividend and CES Energy
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CES Energy Solutions, you can compare the effects of market volatilities on SPTSX Dividend and CES Energy 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 CES Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CES Energy.
Diversification Opportunities for SPTSX Dividend and CES Energy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and CES is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CES Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CES Energy Solutions 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 CES Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CES Energy Solutions has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CES Energy go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CES Energy
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 13.44 times less return on investment than CES Energy. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 6.44 times less risky than CES Energy. It trades about 0.17 of its potential returns per unit of risk. CES Energy Solutions is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 774.00 in CES Energy Solutions on August 25, 2024 and sell it today you would earn a total of 203.00 from holding CES Energy Solutions or generate 26.23% 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. CES Energy Solutions
Performance |
| Timeline |
SPTSX Dividend and CES Energy Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CES Energy Solutions
Pair trading matchups for CES Energy
Pair Trading with SPTSX Dividend and CES Energy
The main advantage of trading using opposite SPTSX Dividend and CES Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CES Energy 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 CES Energy will offset losses from the drop in CES Energy's long position.| SPTSX Dividend vs. Diamond Estates Wines | SPTSX Dividend vs. Ocumetics Technology Corp | SPTSX Dividend vs. Mako Mining Corp | SPTSX Dividend vs. American Hotel Income |
| CES Energy vs. Secure Energy Services | CES Energy vs. Ensign Energy Services | CES Energy vs. Kelt Exploration | CES Energy vs. Trican Well Service |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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