Correlation Between SPTSX Dividend and Hamilton Canadian
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Hamilton Canadian Bank, you can compare the effects of market volatilities on SPTSX Dividend and Hamilton Canadian 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 Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Hamilton Canadian.
Diversification Opportunities for SPTSX Dividend and Hamilton Canadian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Hamilton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Hamilton Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian Bank 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 Hamilton Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian Bank has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Hamilton Canadian go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Hamilton Canadian
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.45 times less return on investment than Hamilton Canadian. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.11 times less risky than Hamilton Canadian. It trades about 0.15 of its potential returns per unit of risk. Hamilton Canadian Bank is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,316 in Hamilton Canadian Bank on August 29, 2024 and sell it today you would earn a total of 88.00 from holding Hamilton Canadian Bank or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Hamilton Canadian Bank
Performance |
| Timeline |
SPTSX Dividend and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Hamilton Canadian Bank
Pair trading matchups for Hamilton Canadian
Pair Trading with SPTSX Dividend and Hamilton Canadian
The main advantage of trading using opposite SPTSX Dividend and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Hamilton Canadian 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 Hamilton Canadian will offset losses from the drop in Hamilton Canadian's long position.| SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. Firan Technology Group | SPTSX Dividend vs. Computer Modelling Group | SPTSX Dividend vs. Northstar Clean Technologies |
| Hamilton Canadian vs. BMO Global High | Hamilton Canadian vs. BMO Covered Call | Hamilton Canadian vs. BMO Europe High | Hamilton Canadian vs. Forstrong Global Income |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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