Correlation Between SPTSX Dividend and Global X
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Global X Lithium, you can compare the effects of market volatilities on SPTSX Dividend and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Global X.
Diversification Opportunities for SPTSX Dividend and Global X
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Global X Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Lithium 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Lithium has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Global X go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Global X
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.25 times more return on investment than Global X. However, SPTSX Dividend Aristocrats is 3.99 times less risky than Global X. It trades about 0.22 of its potential returns per unit of risk. Global X Lithium is currently generating about -0.07 per unit of risk. If you would invest 31,656 in SPTSX Dividend Aristocrats on September 3, 2024 and sell it today you would earn a total of 5,915 from holding SPTSX Dividend Aristocrats or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.65% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Global X Lithium
Performance |
| Timeline |
SPTSX Dividend and Global X Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Global X Lithium
Pair trading matchups for Global X
Pair Trading with SPTSX Dividend and Global X
The main advantage of trading using opposite SPTSX Dividend and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| SPTSX Dividend vs. 2028 Investment Grade | SPTSX Dividend vs. Upstart Investments | SPTSX Dividend vs. Brookfield Investments | SPTSX Dividend vs. Atrium Mortgage Investment |
| Global X vs. International Zeolite Corp | Global X vs. European Residential Real | Global X vs. Financial 15 Split | Global X vs. Rubicon Organics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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