Correlation Between SPTSX Dividend and Fredonia Mining
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Fredonia Mining, you can compare the effects of market volatilities on SPTSX Dividend and Fredonia Mining 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 Fredonia Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Fredonia Mining.
Diversification Opportunities for SPTSX Dividend and Fredonia Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Fredonia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Fredonia Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fredonia Mining 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 Fredonia Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fredonia Mining has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Fredonia Mining go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Fredonia Mining
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.07 times more return on investment than Fredonia Mining. However, SPTSX Dividend Aristocrats is 13.93 times less risky than Fredonia Mining. It trades about -0.36 of its potential returns per unit of risk. Fredonia Mining is currently generating about -0.1 per unit of risk. If you would invest 37,507 in SPTSX Dividend Aristocrats on October 1, 2024 and sell it today you would lose (1,367) from holding SPTSX Dividend Aristocrats or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Fredonia Mining
Performance |
| Timeline |
SPTSX Dividend and Fredonia Mining Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Fredonia Mining
Pair trading matchups for Fredonia Mining
Pair Trading with SPTSX Dividend and Fredonia Mining
The main advantage of trading using opposite SPTSX Dividend and Fredonia Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Fredonia Mining 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 Fredonia Mining will offset losses from the drop in Fredonia Mining's long position.| SPTSX Dividend vs. NeuPath Health | SPTSX Dividend vs. Overactive Media Corp | SPTSX Dividend vs. Canadian Utilities Limited | SPTSX Dividend vs. East Side Games |
| Fredonia Mining vs. Precipitate Gold Corp | Fredonia Mining vs. ROKMASTER Resources Corp | Fredonia Mining vs. Rugby Mining Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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