Correlation Between SPTSX Dividend and Global X
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Global X Pipelines, 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
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Global is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Global X Pipelines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Pipelines 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 Pipelines 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 is expected to generate 1.3 times less return on investment than Global X. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.43 times less risky than Global X. It trades about 0.07 of its potential returns per unit of risk. Global X Pipelines is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 924.00 in Global X Pipelines on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Global X Pipelines or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Global X Pipelines
Performance |
| Timeline |
SPTSX Dividend and Global X Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Global X Pipelines
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. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| Global X vs. iShares SPTSX Capped | Global X vs. iShares SPTSX Global | Global X vs. iShares SPTSX 60 | Global X vs. iShares SPTSX Capped |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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