Correlation Between SPTSX Dividend and IShares Fundamental
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and iShares Fundamental Hedged, you can compare the effects of market volatilities on SPTSX Dividend and IShares Fundamental 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 IShares Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and IShares Fundamental.
Diversification Opportunities for SPTSX Dividend and IShares Fundamental
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPTSX and IShares is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and iShares Fundamental Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fundamental 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 IShares Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fundamental has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and IShares Fundamental go up and down completely randomly.
Pair Corralation between SPTSX Dividend and IShares Fundamental
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.05 times less return on investment than IShares Fundamental. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.13 times less risky than IShares Fundamental. It trades about 0.05 of its potential returns per unit of risk. iShares Fundamental Hedged is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,205 in iShares Fundamental Hedged on November 27, 2024 and sell it today you would earn a total of 1,382 from holding iShares Fundamental Hedged or generate 32.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.6% |
Values | Daily Returns |
SPTSX Dividend Aristocrats vs. iShares Fundamental Hedged
Performance |
Timeline |
SPTSX Dividend and IShares Fundamental Volatility Contrast
Predicted Return Density |
Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
iShares Fundamental Hedged
Pair trading matchups for IShares Fundamental
Pair Trading with SPTSX Dividend and IShares Fundamental
The main advantage of trading using opposite SPTSX Dividend and IShares Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, IShares Fundamental 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 IShares Fundamental will offset losses from the drop in IShares Fundamental's long position.SPTSX Dividend vs. Postmedia Network Canada | SPTSX Dividend vs. Manulife Financial Corp | SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. CI Financial Corp |
IShares Fundamental vs. iShares Convertible Bond | IShares Fundamental vs. iShares SP Mid Cap | IShares Fundamental vs. iShares Edge MSCI | IShares Fundamental vs. iShares Flexible Monthly |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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