Correlation Between SPTSX Dividend and Maple Leaf
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Maple Leaf Foods, you can compare the effects of market volatilities on SPTSX Dividend and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Maple Leaf.
Diversification Opportunities for SPTSX Dividend and Maple Leaf
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPTSX and Maple is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Maple Leaf go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Maple Leaf
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 4.76 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 4.27 times less risky than Maple Leaf. It trades about 0.18 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,146 in Maple Leaf Foods on August 28, 2024 and sell it today you would earn a total of 188.00 from holding Maple Leaf Foods or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Maple Leaf Foods
Performance |
| Timeline |
SPTSX Dividend and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Maple Leaf Foods
Pair trading matchups for Maple Leaf
Pair Trading with SPTSX Dividend and Maple Leaf
The main advantage of trading using opposite SPTSX Dividend and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| SPTSX Dividend vs. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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