Correlation Between SPTSX Dividend and Magna Terra
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Magna Terra Minerals, you can compare the effects of market volatilities on SPTSX Dividend and Magna Terra 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 Terra. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Magna Terra.
Diversification Opportunities for SPTSX Dividend and Magna Terra
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Magna is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Magna Terra Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Terra Minerals 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 Terra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Terra Minerals has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Magna Terra go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Magna Terra
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 10.06 times less return on investment than Magna Terra. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 34.26 times less risky than Magna Terra. It trades about 0.26 of its potential returns per unit of risk. Magna Terra Minerals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Magna Terra Minerals on September 1, 2024 and sell it today you would lose (0.50) from holding Magna Terra Minerals or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Magna Terra Minerals
Performance |
| Timeline |
SPTSX Dividend and Magna Terra Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Magna Terra Minerals
Pair trading matchups for Magna Terra
Pair Trading with SPTSX Dividend and Magna Terra
The main advantage of trading using opposite SPTSX Dividend and Magna Terra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Magna Terra 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 Terra will offset losses from the drop in Magna Terra'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 |
| Magna Terra vs. Kiplin Metals | Magna Terra vs. Pure Energy Minerals | Magna Terra vs. Noram Lithium Corp | Magna Terra vs. Minnova Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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