Correlation Between SPTSX Dividend and National Bank
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and National Bank of, you can compare the effects of market volatilities on SPTSX Dividend and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and National Bank.
Diversification Opportunities for SPTSX Dividend and National Bank
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and National is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and National Bank go up and down completely randomly.
Pair Corralation between SPTSX Dividend and National Bank
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 1.61 times more return on investment than National Bank. However, SPTSX Dividend is 1.61 times more volatile than National Bank of. It trades about 0.2 of its potential returns per unit of risk. National Bank of is currently generating about 0.18 per unit of risk. If you would invest 36,606 in SPTSX Dividend Aristocrats on August 30, 2024 and sell it today you would earn a total of 763.00 from holding SPTSX Dividend Aristocrats or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. National Bank of
Performance |
| Timeline |
SPTSX Dividend and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
National Bank of
Pair trading matchups for National Bank
Pair Trading with SPTSX Dividend and National Bank
The main advantage of trading using opposite SPTSX Dividend and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. Marimaca Copper Corp | SPTSX Dividend vs. Network Media Group | SPTSX Dividend vs. Nicola Mining |
| National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. National Bank of | National Bank vs. Bank of Montreal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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