Correlation Between SPTSX Dividend and K2 Gold
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and K2 Gold, you can compare the effects of market volatilities on SPTSX Dividend and K2 Gold 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 K2 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and K2 Gold.
Diversification Opportunities for SPTSX Dividend and K2 Gold
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and KTO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and K2 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K2 Gold 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 K2 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K2 Gold has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and K2 Gold go up and down completely randomly.
Pair Corralation between SPTSX Dividend and K2 Gold
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 11.35 times less return on investment than K2 Gold. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 13.52 times less risky than K2 Gold. It trades about 0.17 of its potential returns per unit of risk. K2 Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12.00 in K2 Gold on August 27, 2024 and sell it today you would earn a total of 2.00 from holding K2 Gold or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. K2 Gold
Performance |
| Timeline |
SPTSX Dividend and K2 Gold Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
K2 Gold
Pair trading matchups for K2 Gold
Pair Trading with SPTSX Dividend and K2 Gold
The main advantage of trading using opposite SPTSX Dividend and K2 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, K2 Gold 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 K2 Gold will offset losses from the drop in K2 Gold's long position.| SPTSX Dividend vs. VIP Entertainment Technologies | SPTSX Dividend vs. Primaris Retail RE | SPTSX Dividend vs. SalesforceCom CDR | SPTSX Dividend vs. Contagious Gaming |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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