Correlation Between SPTSX Dividend and CI Europe
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and CI Europe Hedged, you can compare the effects of market volatilities on SPTSX Dividend and CI Europe 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 CI Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and CI Europe.
Diversification Opportunities for SPTSX Dividend and CI Europe
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and EHE is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and CI Europe Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Europe Hedged 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 CI Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Europe Hedged has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and CI Europe go up and down completely randomly.
Pair Corralation between SPTSX Dividend and CI Europe
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.71 times more return on investment than CI Europe. However, SPTSX Dividend Aristocrats is 1.41 times less risky than CI Europe. It trades about 0.17 of its potential returns per unit of risk. CI Europe Hedged is currently generating about 0.05 per unit of risk. If you would invest 28,980 in SPTSX Dividend Aristocrats on September 1, 2024 and sell it today you would earn a total of 8,591 from holding SPTSX Dividend Aristocrats or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.26% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. CI Europe Hedged
Performance |
| Timeline |
SPTSX Dividend and CI Europe Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
CI Europe Hedged
Pair trading matchups for CI Europe
Pair Trading with SPTSX Dividend and CI Europe
The main advantage of trading using opposite SPTSX Dividend and CI Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, CI Europe 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 CI Europe will offset losses from the drop in CI Europe'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 |
| CI Europe vs. NBI High Yield | CI Europe vs. NBI Unconstrained Fixed | CI Europe vs. Mackenzie Developed ex North | CI Europe vs. BMO Short Term Bond |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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