Correlation Between SPTSX Dividend and Power Financial
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Power Financial 51, you can compare the effects of market volatilities on SPTSX Dividend and Power Financial 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 Power Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Power Financial.
Diversification Opportunities for SPTSX Dividend and Power Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Power is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Power Financial 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Financial 51 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 Power Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Financial 51 has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Power Financial go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Power Financial
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.64 times more return on investment than Power Financial. However, SPTSX Dividend Aristocrats is 1.57 times less risky than Power Financial. It trades about 0.15 of its potential returns per unit of risk. Power Financial 51 is currently generating about -0.15 per unit of risk. If you would invest 36,732 in SPTSX Dividend Aristocrats on August 29, 2024 and sell it today you would earn a total of 558.00 from holding SPTSX Dividend Aristocrats or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Power Financial 51
Performance |
| Timeline |
SPTSX Dividend and Power Financial Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Power Financial 51
Pair trading matchups for Power Financial
Pair Trading with SPTSX Dividend and Power Financial
The main advantage of trading using opposite SPTSX Dividend and Power Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Power Financial 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 Power Financial will offset losses from the drop in Power Financial's long position.| SPTSX Dividend vs. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| Power Financial vs. Manulife Financial Corp | Power Financial vs. Great West Lifeco | Power Financial vs. Great West 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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