Correlation Between SPTSX Dividend and Galaxy Digital
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Galaxy Digital Holdings, you can compare the effects of market volatilities on SPTSX Dividend and Galaxy Digital 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 Galaxy Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Galaxy Digital.
Diversification Opportunities for SPTSX Dividend and Galaxy Digital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Galaxy is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Galaxy Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Digital Holdings 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 Galaxy Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Digital Holdings has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Galaxy Digital go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Galaxy Digital
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 18.16 times less return on investment than Galaxy Digital. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 16.41 times less risky than Galaxy Digital. It trades about 0.15 of its potential returns per unit of risk. Galaxy Digital Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Galaxy Digital Holdings on August 28, 2024 and sell it today you would earn a total of 459.00 from holding Galaxy Digital Holdings or generate 24.6% 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. Galaxy Digital Holdings
Performance |
| Timeline |
SPTSX Dividend and Galaxy Digital Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Galaxy Digital Holdings
Pair trading matchups for Galaxy Digital
Pair Trading with SPTSX Dividend and Galaxy Digital
The main advantage of trading using opposite SPTSX Dividend and Galaxy Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Galaxy Digital 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 Galaxy Digital will offset losses from the drop in Galaxy Digital'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 |
| Galaxy Digital vs. Telus Corp | Galaxy Digital vs. Toronto Dominion Bank | Galaxy Digital vs. Manulife Financial Corp | Galaxy Digital vs. Canadian Natural Resources |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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