Correlation Between SPTSX Dividend and Knight Therapeutics
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Knight Therapeutics, you can compare the effects of market volatilities on SPTSX Dividend and Knight Therapeutics 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 Knight Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Knight Therapeutics.
Diversification Opportunities for SPTSX Dividend and Knight Therapeutics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Knight is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Knight Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Therapeutics 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 Knight Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Therapeutics has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Knight Therapeutics go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Knight Therapeutics
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.29 times more return on investment than Knight Therapeutics. However, SPTSX Dividend Aristocrats is 3.47 times less risky than Knight Therapeutics. It trades about 0.26 of its potential returns per unit of risk. Knight Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 31,545 in SPTSX Dividend Aristocrats on August 31, 2024 and sell it today you would earn a total of 6,026 from holding SPTSX Dividend Aristocrats or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Knight Therapeutics
Performance |
| Timeline |
SPTSX Dividend and Knight Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Knight Therapeutics
Pair trading matchups for Knight Therapeutics
Pair Trading with SPTSX Dividend and Knight Therapeutics
The main advantage of trading using opposite SPTSX Dividend and Knight Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Knight Therapeutics 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 Knight Therapeutics will offset losses from the drop in Knight Therapeutics' long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
| Knight Therapeutics vs. iShares Canadian HYBrid | Knight Therapeutics vs. Brompton European Dividend | Knight Therapeutics vs. Solar Alliance Energy | Knight Therapeutics vs. PHN Multi Style All Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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