Correlation Between SPTSX Dividend and Dollarama
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Dollarama, you can compare the effects of market volatilities on SPTSX Dividend and Dollarama 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 Dollarama. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Dollarama.
Diversification Opportunities for SPTSX Dividend and Dollarama
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Dollarama is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Dollarama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollarama 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 Dollarama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollarama has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Dollarama go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Dollarama
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.38 times more return on investment than Dollarama. However, SPTSX Dividend Aristocrats is 2.67 times less risky than Dollarama. It trades about 0.19 of its potential returns per unit of risk. Dollarama is currently generating about -0.01 per unit of risk. If you would invest 36,732 in SPTSX Dividend Aristocrats on August 27, 2024 and sell it today you would earn a total of 678.00 from holding SPTSX Dividend Aristocrats or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Dollarama
Performance |
| Timeline |
SPTSX Dividend and Dollarama Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Dollarama
Pair trading matchups for Dollarama
Pair Trading with SPTSX Dividend and Dollarama
The main advantage of trading using opposite SPTSX Dividend and Dollarama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Dollarama 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 Dollarama will offset losses from the drop in Dollarama's long position.| SPTSX Dividend vs. VIP Entertainment Technologies | SPTSX Dividend vs. Primaris Retail RE | SPTSX Dividend vs. SalesforceCom CDR | SPTSX Dividend vs. Contagious Gaming |
| Dollarama vs. Chatham Rock Phosphate | Dollarama vs. Alaska Energy Metals | Dollarama vs. Elixxer | Dollarama vs. Cielo Waste Solutions |
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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