Correlation Between SPTSX Dividend and First Quantum
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and First Quantum Minerals, you can compare the effects of market volatilities on SPTSX Dividend and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and First Quantum.
Diversification Opportunities for SPTSX Dividend and First Quantum
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and First is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and First Quantum go up and down completely randomly.
Pair Corralation between SPTSX Dividend and First Quantum
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.27 times less return on investment than First Quantum. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 6.57 times less risky than First Quantum. It trades about 0.15 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,851 in First Quantum Minerals on August 29, 2024 and sell it today you would earn a total of 18.00 from holding First Quantum Minerals or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. First Quantum Minerals
Performance |
| Timeline |
SPTSX Dividend and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
First Quantum Minerals
Pair trading matchups for First Quantum
Pair Trading with SPTSX Dividend and First Quantum
The main advantage of trading using opposite SPTSX Dividend and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.| SPTSX Dividend vs. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| First Quantum vs. Lundin Mining | First Quantum vs. HudBay Minerals | First Quantum vs. Teck Resources Limited | First Quantum vs. Ivanhoe Mines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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