Correlation Between SPTSX Dividend and Cymbria
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Cymbria, you can compare the effects of market volatilities on SPTSX Dividend and Cymbria 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 Cymbria. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Cymbria.
Diversification Opportunities for SPTSX Dividend and Cymbria
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Cymbria is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Cymbria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cymbria 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 Cymbria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cymbria has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Cymbria go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Cymbria
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.14 times less return on investment than Cymbria. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.3 times less risky than Cymbria. It trades about 0.09 of its potential returns per unit of risk. Cymbria is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,925 in Cymbria on August 31, 2024 and sell it today you would earn a total of 1,565 from holding Cymbria or generate 26.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Cymbria
Performance |
| Timeline |
SPTSX Dividend and Cymbria Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Cymbria
Pair trading matchups for Cymbria
Pair Trading with SPTSX Dividend and Cymbria
The main advantage of trading using opposite SPTSX Dividend and Cymbria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Cymbria 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 Cymbria will offset losses from the drop in Cymbria's long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
| Cymbria vs. Clairvest Group | Cymbria vs. Uniteds Limited | Cymbria vs. E L Financial Corp | Cymbria vs. Senvest Capital |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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