Correlation Between SPTSX Dividend and Maxim Power
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Maxim Power Corp, you can compare the effects of market volatilities on SPTSX Dividend and Maxim Power 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 Maxim Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Maxim Power.
Diversification Opportunities for SPTSX Dividend and Maxim Power
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Maxim is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Maxim Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxim Power Corp 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 Maxim Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxim Power Corp has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Maxim Power go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Maxim Power
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.5 times less return on investment than Maxim Power. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 3.58 times less risky than Maxim Power. It trades about 0.07 of its potential returns per unit of risk. Maxim Power Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 318.00 in Maxim Power Corp on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Maxim Power Corp or generate 52.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Maxim Power Corp
Performance |
| Timeline |
SPTSX Dividend and Maxim Power Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Maxim Power Corp
Pair trading matchups for Maxim Power
Pair Trading with SPTSX Dividend and Maxim Power
The main advantage of trading using opposite SPTSX Dividend and Maxim Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Maxim Power 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 Maxim Power will offset losses from the drop in Maxim Power's long position.| SPTSX Dividend vs. VIP Entertainment Technologies | SPTSX Dividend vs. Primaris Retail RE | SPTSX Dividend vs. SalesforceCom CDR | SPTSX Dividend vs. Contagious Gaming |
| Maxim Power vs. Caldwell Partners International | Maxim Power vs. Chesswood Group Limited | Maxim Power vs. Mccoy Global | Maxim Power vs. Pulse Seismic |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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