Correlation Between SPTSX Dividend and Magna Mining
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Magna Mining, you can compare the effects of market volatilities on SPTSX Dividend and Magna Mining 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 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Magna Mining.
Diversification Opportunities for SPTSX Dividend and Magna Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Magna is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining 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 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Magna Mining go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Magna Mining
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 7.91 times less return on investment than Magna Mining. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 10.23 times less risky than Magna Mining. It trades about 0.37 of its potential returns per unit of risk. Magna Mining is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Magna Mining on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Magna Mining or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Magna Mining
Performance |
| Timeline |
SPTSX Dividend and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Magna Mining
Pair trading matchups for Magna Mining
Pair Trading with SPTSX Dividend and Magna Mining
The main advantage of trading using opposite SPTSX Dividend and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Magna Mining 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 Mining will offset losses from the drop in Magna Mining's long position.| SPTSX Dividend vs. 2028 Investment Grade | SPTSX Dividend vs. Upstart Investments | SPTSX Dividend vs. Brookfield Investments | SPTSX Dividend vs. Atrium Mortgage Investment |
| Magna Mining vs. Brunswick Exploration | Magna Mining vs. Fireweed Zinc | Magna Mining vs. Emerita Resources Corp | Magna Mining vs. InZinc Mining |
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 Correlations module to find global opportunities by holding instruments from different markets.
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