Correlation Between SPTSX Dividend and Picton Mahoney
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Picton Mahoney Fortified, you can compare the effects of market volatilities on SPTSX Dividend and Picton Mahoney 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 Picton Mahoney. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Picton Mahoney.
Diversification Opportunities for SPTSX Dividend and Picton Mahoney
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Picton is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Picton Mahoney Fortified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picton Mahoney Fortified 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 Picton Mahoney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picton Mahoney Fortified has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Picton Mahoney go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Picton Mahoney
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.17 times less return on investment than Picton Mahoney. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.08 times less risky than Picton Mahoney. It trades about 0.18 of its potential returns per unit of risk. Picton Mahoney Fortified is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,792 in Picton Mahoney Fortified on September 3, 2024 and sell it today you would earn a total of 351.00 from holding Picton Mahoney Fortified or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.81% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Picton Mahoney Fortified
Performance |
| Timeline |
SPTSX Dividend and Picton Mahoney Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Picton Mahoney Fortified
Pair trading matchups for Picton Mahoney
Pair Trading with SPTSX Dividend and Picton Mahoney
The main advantage of trading using opposite SPTSX Dividend and Picton Mahoney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Picton Mahoney 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 Picton Mahoney will offset losses from the drop in Picton Mahoney'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 |
| Picton Mahoney vs. First Asset Energy | Picton Mahoney vs. First Asset Tech | Picton Mahoney vs. Harvest Equal Weight | Picton Mahoney vs. CI Canada Lifeco |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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