Correlation Between SPTSX Dividend and Magna International
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Magna International, you can compare the effects of market volatilities on SPTSX Dividend and Magna International 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 Magna International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Magna International.
Diversification Opportunities for SPTSX Dividend and Magna International
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Magna is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International 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 Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Magna International go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Magna International
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.33 times more return on investment than Magna International. However, SPTSX Dividend Aristocrats is 3.05 times less risky than Magna International. It trades about 0.17 of its potential returns per unit of risk. Magna International is currently generating about -0.02 per unit of risk. If you would invest 29,291 in SPTSX Dividend Aristocrats on August 24, 2024 and sell it today you would earn a total of 8,017 from holding SPTSX Dividend Aristocrats or generate 27.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Magna International
Performance |
| Timeline |
SPTSX Dividend and Magna International Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Magna International
Pair trading matchups for Magna International
Pair Trading with SPTSX Dividend and Magna International
The main advantage of trading using opposite SPTSX Dividend and Magna International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Magna International 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 Magna International will offset losses from the drop in Magna International's long position.| SPTSX Dividend vs. Diamond Estates Wines | SPTSX Dividend vs. Ocumetics Technology Corp | SPTSX Dividend vs. Mako Mining Corp | SPTSX Dividend vs. American Hotel Income |
| Magna International vs. Canadian National Railway | Magna International vs. Nutrien | Magna International vs. Restaurant Brands International | Magna International vs. Canadian Pacific Railway |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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