Correlation Between SPTSX Dividend and Guardian Ultra
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Guardian Ultra Short Canadian, you can compare the effects of market volatilities on SPTSX Dividend and Guardian Ultra 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 Guardian Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Guardian Ultra.
Diversification Opportunities for SPTSX Dividend and Guardian Ultra
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Guardian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Guardian Ultra Short Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Ultra Short 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 Guardian Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Ultra Short has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Guardian Ultra go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Guardian Ultra
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 10.84 times more return on investment than Guardian Ultra. However, SPTSX Dividend is 10.84 times more volatile than Guardian Ultra Short Canadian. It trades about 0.07 of its potential returns per unit of risk. Guardian Ultra Short Canadian is currently generating about 0.31 per unit of risk. If you would invest 29,771 in SPTSX Dividend Aristocrats on September 13, 2024 and sell it today you would earn a total of 7,382 from holding SPTSX Dividend Aristocrats or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 72.38% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Guardian Ultra Short Canadian
Performance |
| Timeline |
SPTSX Dividend and Guardian Ultra Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Guardian Ultra Short Canadian
Pair trading matchups for Guardian Ultra
Pair Trading with SPTSX Dividend and Guardian Ultra
The main advantage of trading using opposite SPTSX Dividend and Guardian Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Guardian Ultra 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 Guardian Ultra will offset losses from the drop in Guardian Ultra's long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. National Bank of | SPTSX Dividend vs. Bank of Nova | SPTSX Dividend vs. VersaBank |
| Guardian Ultra vs. BetaPro SPTSX Capped | Guardian Ultra vs. BetaPro SPTSX 60 | Guardian Ultra vs. BetaPro SP 500 | Guardian Ultra vs. BetaPro NASDAQ 100 2x |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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