Correlation Between SPTSX Dividend and Electra Battery
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Electra Battery Materials, you can compare the effects of market volatilities on SPTSX Dividend and Electra Battery 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 Electra Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Electra Battery.
Diversification Opportunities for SPTSX Dividend and Electra Battery
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Electra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Electra Battery Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Battery Materials 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 Electra Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Battery Materials has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Electra Battery go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Electra Battery
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.18 times more return on investment than Electra Battery. However, SPTSX Dividend Aristocrats is 5.69 times less risky than Electra Battery. It trades about 0.17 of its potential returns per unit of risk. Electra Battery Materials is currently generating about -0.04 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 628.00 from holding SPTSX Dividend Aristocrats or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Electra Battery Materials
Performance |
| Timeline |
SPTSX Dividend and Electra Battery Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Electra Battery Materials
Pair trading matchups for Electra Battery
Pair Trading with SPTSX Dividend and Electra Battery
The main advantage of trading using opposite SPTSX Dividend and Electra Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Electra Battery 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 Electra Battery will offset losses from the drop in Electra Battery'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 |
| Electra Battery vs. Frontier Lithium | Electra Battery vs. Electra Battery Materials | Electra Battery vs. E3 Lithium | Electra Battery vs. Canada Nickel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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