Correlation Between SPTSX Dividend and BetaPro NASDAQ
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BetaPro NASDAQ 100 2x, you can compare the effects of market volatilities on SPTSX Dividend and BetaPro NASDAQ 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 BetaPro NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BetaPro NASDAQ.
Diversification Opportunities for SPTSX Dividend and BetaPro NASDAQ
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and BetaPro is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BetaPro NASDAQ 100 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro NASDAQ 100 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 BetaPro NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro NASDAQ 100 has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BetaPro NASDAQ go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BetaPro NASDAQ
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.09 times less return on investment than BetaPro NASDAQ. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 4.64 times less risky than BetaPro NASDAQ. It trades about 0.22 of its potential returns per unit of risk. BetaPro NASDAQ 100 2x is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,206 in BetaPro NASDAQ 100 2x on August 28, 2024 and sell it today you would earn a total of 173.00 from holding BetaPro NASDAQ 100 2x or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BetaPro NASDAQ 100 2x
Performance |
| Timeline |
SPTSX Dividend and BetaPro NASDAQ Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BetaPro NASDAQ 100 2x
Pair trading matchups for BetaPro NASDAQ
Pair Trading with SPTSX Dividend and BetaPro NASDAQ
The main advantage of trading using opposite SPTSX Dividend and BetaPro NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BetaPro NASDAQ 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 BetaPro NASDAQ will offset losses from the drop in BetaPro NASDAQ'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 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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