Correlation Between SPTSX Dividend and McDonalds Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and McDonalds Corp CDR, you can compare the effects of market volatilities on SPTSX Dividend and McDonalds Corp 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 McDonalds Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and McDonalds Corp.
Diversification Opportunities for SPTSX Dividend and McDonalds Corp
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPTSX and McDonalds is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and McDonalds Corp CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McDonalds Corp CDR 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 McDonalds Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McDonalds Corp CDR has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and McDonalds Corp go up and down completely randomly.
Pair Corralation between SPTSX Dividend and McDonalds Corp
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.43 times more return on investment than McDonalds Corp. However, SPTSX Dividend Aristocrats is 2.35 times less risky than McDonalds Corp. It trades about 0.42 of its potential returns per unit of risk. McDonalds Corp CDR is currently generating about 0.08 per unit of risk. If you would invest 36,294 in SPTSX Dividend Aristocrats on September 1, 2024 and sell it today you would earn a total of 1,277 from holding SPTSX Dividend Aristocrats or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. McDonalds Corp CDR
Performance |
| Timeline |
SPTSX Dividend and McDonalds Corp Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
McDonalds Corp CDR
Pair trading matchups for McDonalds Corp
Pair Trading with SPTSX Dividend and McDonalds Corp
The main advantage of trading using opposite SPTSX Dividend and McDonalds Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, McDonalds Corp 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 McDonalds Corp will offset losses from the drop in McDonalds Corp'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 |
| McDonalds Corp vs. Restaurant Brands International | McDonalds Corp vs. Enghouse Systems | McDonalds Corp vs. Metro Inc | McDonalds Corp vs. BRP Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |