Correlation Between SPTSX Dividend and RBC Quant
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and RBC Quant Canadian, you can compare the effects of market volatilities on SPTSX Dividend and RBC Quant 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 RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and RBC Quant.
Diversification Opportunities for SPTSX Dividend and RBC Quant
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and RBC is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and RBC Quant Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Canadian 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 RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant Canadian has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and RBC Quant go up and down completely randomly.
Pair Corralation between SPTSX Dividend and RBC Quant
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.12 times less return on investment than RBC Quant. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.08 times less risky than RBC Quant. It trades about 0.16 of its potential returns per unit of risk. RBC Quant Canadian is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,488 in RBC Quant Canadian on August 25, 2024 and sell it today you would earn a total of 503.00 from holding RBC Quant Canadian or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.95% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. RBC Quant Canadian
Performance |
| Timeline |
SPTSX Dividend and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
RBC Quant Canadian
Pair trading matchups for RBC Quant
Pair Trading with SPTSX Dividend and RBC Quant
The main advantage of trading using opposite SPTSX Dividend and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, RBC Quant 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 RBC Quant will offset losses from the drop in RBC Quant's long position.| SPTSX Dividend vs. Contagious Gaming | SPTSX Dividend vs. Gamehost | SPTSX Dividend vs. Ramp Metals | SPTSX Dividend vs. Air Canada |
| RBC Quant vs. RBC Quant Dividend | RBC Quant vs. RBC Quant EAFE | RBC Quant vs. Invesco Canadian Dividend | RBC Quant vs. RBC Canadian Preferred |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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