Correlation Between SPTSX Dividend and Invesco FTSE
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Invesco FTSE RAFI, you can compare the effects of market volatilities on SPTSX Dividend and Invesco FTSE 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 Invesco FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Invesco FTSE.
Diversification Opportunities for SPTSX Dividend and Invesco FTSE
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Invesco is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Invesco FTSE RAFI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco FTSE RAFI 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 Invesco FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco FTSE RAFI has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Invesco FTSE go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Invesco FTSE
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.56 times more return on investment than Invesco FTSE. However, SPTSX Dividend Aristocrats is 1.8 times less risky than Invesco FTSE. It trades about 0.25 of its potential returns per unit of risk. Invesco FTSE RAFI is currently generating about 0.09 per unit of risk. If you would invest 35,647 in SPTSX Dividend Aristocrats on August 25, 2024 and sell it today you would earn a total of 1,713 from holding SPTSX Dividend Aristocrats or generate 4.81% 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. Invesco FTSE RAFI
Performance |
| Timeline |
SPTSX Dividend and Invesco FTSE Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Invesco FTSE RAFI
Pair trading matchups for Invesco FTSE
Pair Trading with SPTSX Dividend and Invesco FTSE
The main advantage of trading using opposite SPTSX Dividend and Invesco FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Invesco FTSE 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 Invesco FTSE will offset losses from the drop in Invesco FTSE's long position.| SPTSX Dividend vs. Contagious Gaming | SPTSX Dividend vs. Gamehost | SPTSX Dividend vs. Ramp Metals | SPTSX Dividend vs. Air Canada |
| Invesco FTSE vs. Global Atomic Corp | Invesco FTSE vs. enCore Energy Corp | Invesco FTSE vs. Fission Uranium Corp | Invesco FTSE vs. NexGen Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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