Correlation Between SPTSX Dividend and Cobalt Power
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Cobalt Power Group, you can compare the effects of market volatilities on SPTSX Dividend and Cobalt 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 Cobalt Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Cobalt Power.
Diversification Opportunities for SPTSX Dividend and Cobalt Power
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and Cobalt is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Cobalt Power Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobalt Power Group 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 Cobalt Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobalt Power Group has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Cobalt Power go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Cobalt Power
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.16 times more return on investment than Cobalt Power. However, SPTSX Dividend Aristocrats is 6.2 times less risky than Cobalt Power. It trades about -0.1 of its potential returns per unit of risk. Cobalt Power Group is currently generating about -0.22 per unit of risk. If you would invest 36,122 in SPTSX Dividend Aristocrats on November 27, 2024 and sell it today you would lose (427.00) from holding SPTSX Dividend Aristocrats or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Cobalt Power Group
Performance |
| Timeline |
SPTSX Dividend and Cobalt Power Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Cobalt Power Group
Pair trading matchups for Cobalt Power
Pair Trading with SPTSX Dividend and Cobalt Power
The main advantage of trading using opposite SPTSX Dividend and Cobalt Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Cobalt 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 Cobalt Power will offset losses from the drop in Cobalt Power's long position.| SPTSX Dividend vs. Postmedia Network Canada | SPTSX Dividend vs. Manulife Financial Corp | SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. CI Financial Corp |
| Cobalt Power vs. Queens Road Capital | Cobalt Power vs. MTY Food Group | Cobalt Power vs. Verizon Communications CDR | Cobalt Power vs. Network Media Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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