Correlation Between SPTSX Dividend and Mackenzie Large
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Mackenzie Large Cap, you can compare the effects of market volatilities on SPTSX Dividend and Mackenzie Large 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 Mackenzie Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Mackenzie Large.
Diversification Opportunities for SPTSX Dividend and Mackenzie Large
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Mackenzie is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Mackenzie Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Large Cap 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 Mackenzie Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Large Cap has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Mackenzie Large go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Mackenzie Large
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.08 times less return on investment than Mackenzie Large. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.54 times less risky than Mackenzie Large. It trades about 0.37 of its potential returns per unit of risk. Mackenzie Large Cap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 18,816 in Mackenzie Large Cap on September 3, 2024 and sell it today you would earn a total of 1,193 from holding Mackenzie Large Cap or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Mackenzie Large Cap
Performance |
| Timeline |
SPTSX Dividend and Mackenzie Large Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Mackenzie Large Cap
Pair trading matchups for Mackenzie Large
Pair Trading with SPTSX Dividend and Mackenzie Large
The main advantage of trading using opposite SPTSX Dividend and Mackenzie Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Mackenzie Large 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 Mackenzie Large will offset losses from the drop in Mackenzie Large'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 |
| Mackenzie Large vs. Franklin Bissett Corporate | Mackenzie Large vs. FT AlphaDEX Industrials | Mackenzie Large vs. Dynamic Active Dividend | Mackenzie Large vs. BMO Aggregate Bond |
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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