Correlation Between SPTSX Dividend and Leons Furniture
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Leons Furniture Limited, you can compare the effects of market volatilities on SPTSX Dividend and Leons Furniture 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 Leons Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Leons Furniture.
Diversification Opportunities for SPTSX Dividend and Leons Furniture
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and Leons is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Leons Furniture Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leons Furniture 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 Leons Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leons Furniture has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Leons Furniture go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Leons Furniture
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.76 times less return on investment than Leons Furniture. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 3.03 times less risky than Leons Furniture. It trades about 0.09 of its potential returns per unit of risk. Leons Furniture Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,982 in Leons Furniture Limited on August 31, 2024 and sell it today you would earn a total of 730.00 from holding Leons Furniture Limited or generate 36.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Leons Furniture Limited
Performance |
| Timeline |
SPTSX Dividend and Leons Furniture Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Leons Furniture Limited
Pair trading matchups for Leons Furniture
Pair Trading with SPTSX Dividend and Leons Furniture
The main advantage of trading using opposite SPTSX Dividend and Leons Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Leons Furniture 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 Leons Furniture will offset losses from the drop in Leons Furniture'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 |
| Leons Furniture vs. Berkshire Hathaway CDR | Leons Furniture vs. JPMorgan Chase Co | Leons Furniture vs. Bank of America | Leons Furniture vs. Alphabet Inc 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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