Correlation Between SPTSX Dividend and BetaPro SP
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BetaPro SP TSX, you can compare the effects of market volatilities on SPTSX Dividend and BetaPro SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BetaPro SP.
Diversification Opportunities for SPTSX Dividend and BetaPro SP
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and BetaPro is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BetaPro SP TSX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SP TSX 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SP TSX has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BetaPro SP go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BetaPro SP
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.31 times less return on investment than BetaPro SP. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.13 times less risky than BetaPro SP. It trades about 0.09 of its potential returns per unit of risk. BetaPro SP TSX is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,827 in BetaPro SP TSX on August 31, 2024 and sell it today you would earn a total of 1,086 from holding BetaPro SP TSX or generate 59.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BetaPro SP TSX
Performance |
| Timeline |
SPTSX Dividend and BetaPro SP Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BetaPro SP TSX
Pair trading matchups for BetaPro SP
Pair Trading with SPTSX Dividend and BetaPro SP
The main advantage of trading using opposite SPTSX Dividend and BetaPro SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BetaPro SP 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 SP will offset losses from the drop in BetaPro SP's long position.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
| BetaPro SP vs. BetaPro SPTSX 60 | BetaPro SP vs. BetaPro SPTSX Capped | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro SP TSX |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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