Correlation Between SPTSX Dividend and LithiumBank Resources
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and LithiumBank Resources Corp, you can compare the effects of market volatilities on SPTSX Dividend and LithiumBank Resources 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 LithiumBank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and LithiumBank Resources.
Diversification Opportunities for SPTSX Dividend and LithiumBank Resources
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPTSX and LithiumBank is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and LithiumBank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LithiumBank Resources 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 LithiumBank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LithiumBank Resources has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and LithiumBank Resources go up and down completely randomly.
Pair Corralation between SPTSX Dividend and LithiumBank Resources
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.14 times more return on investment than LithiumBank Resources. However, SPTSX Dividend Aristocrats is 7.09 times less risky than LithiumBank Resources. It trades about 0.07 of its potential returns per unit of risk. LithiumBank Resources Corp is currently generating about -0.02 per unit of risk. If you would invest 30,397 in SPTSX Dividend Aristocrats on September 2, 2024 and sell it today you would earn a total of 7,174 from holding SPTSX Dividend Aristocrats or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. LithiumBank Resources Corp
Performance |
| Timeline |
SPTSX Dividend and LithiumBank Resources Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
LithiumBank Resources Corp
Pair trading matchups for LithiumBank Resources
Pair Trading with SPTSX Dividend and LithiumBank Resources
The main advantage of trading using opposite SPTSX Dividend and LithiumBank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, LithiumBank Resources 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 LithiumBank Resources will offset losses from the drop in LithiumBank Resources' long position.| SPTSX Dividend vs. Vizsla Silver Corp | SPTSX Dividend vs. Globex Mining Enterprises | SPTSX Dividend vs. Arizona Gold Silver | SPTSX Dividend vs. Renoworks Software |
| LithiumBank Resources vs. Canaf Investments | LithiumBank Resources vs. Atrium Mortgage Investment | LithiumBank Resources vs. Westshore Terminals Investment | LithiumBank Resources vs. Jamieson Wellness |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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