Correlation Between SPTSX Dividend and Newport Exploration
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Newport Exploration, you can compare the effects of market volatilities on SPTSX Dividend and Newport Exploration 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 Newport Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Newport Exploration.
Diversification Opportunities for SPTSX Dividend and Newport Exploration
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and Newport is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Newport Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newport Exploration 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 Newport Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newport Exploration has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Newport Exploration go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Newport Exploration
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.13 times more return on investment than Newport Exploration. However, SPTSX Dividend Aristocrats is 8.0 times less risky than Newport Exploration. It trades about 0.16 of its potential returns per unit of risk. Newport Exploration is currently generating about -0.05 per unit of risk. If you would invest 28,022 in SPTSX Dividend Aristocrats on August 29, 2024 and sell it today you would earn a total of 9,347 from holding SPTSX Dividend Aristocrats or generate 33.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Newport Exploration
Performance |
| Timeline |
SPTSX Dividend and Newport Exploration Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Newport Exploration
Pair trading matchups for Newport Exploration
Pair Trading with SPTSX Dividend and Newport Exploration
The main advantage of trading using opposite SPTSX Dividend and Newport Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Newport Exploration 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 Newport Exploration will offset losses from the drop in Newport Exploration's long position.| SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. Firan Technology Group | SPTSX Dividend vs. Computer Modelling Group | SPTSX Dividend vs. Northstar Clean Technologies |
| Newport Exploration vs. First Majestic Silver | Newport Exploration vs. Ivanhoe Energy | Newport Exploration vs. Orezone Gold Corp | Newport Exploration vs. Faraday Copper 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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