Correlation Between SPTSX Dividend and Imperial Oil
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Imperial Oil, you can compare the effects of market volatilities on SPTSX Dividend and Imperial Oil 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 Imperial Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Imperial Oil.
Diversification Opportunities for SPTSX Dividend and Imperial Oil
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Imperial is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Imperial Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperial Oil 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 Imperial Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperial Oil has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Imperial Oil go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Imperial Oil
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.3 times less return on investment than Imperial Oil. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.9 times less risky than Imperial Oil. It trades about 0.17 of its potential returns per unit of risk. Imperial Oil is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,528 in Imperial Oil on September 1, 2024 and sell it today you would earn a total of 1,841 from holding Imperial Oil or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.95% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Imperial Oil
Performance |
| Timeline |
SPTSX Dividend and Imperial Oil Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Imperial Oil
Pair trading matchups for Imperial Oil
Pair Trading with SPTSX Dividend and Imperial Oil
The main advantage of trading using opposite SPTSX Dividend and Imperial Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Imperial Oil 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 Imperial Oil will offset losses from the drop in Imperial Oil's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| Imperial Oil vs. Canadian Natural Resources | Imperial Oil vs. Cenovus Energy | Imperial Oil vs. TC Energy Corp | Imperial Oil vs. Suncor Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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