Correlation Between SPTSX Dividend and Reitmans
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Reitmans Limited, you can compare the effects of market volatilities on SPTSX Dividend and Reitmans 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 Reitmans. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Reitmans.
Diversification Opportunities for SPTSX Dividend and Reitmans
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Reitmans is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Limited 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 Reitmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Limited has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Reitmans go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Reitmans
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.77 times less return on investment than Reitmans. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 4.63 times less risky than Reitmans. It trades about 0.07 of its potential returns per unit of risk. Reitmans Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Reitmans Limited on September 14, 2024 and sell it today you would earn a total of 45.00 from holding Reitmans Limited or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Reitmans Limited
Performance |
| Timeline |
SPTSX Dividend and Reitmans Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Reitmans Limited
Pair trading matchups for Reitmans
Pair Trading with SPTSX Dividend and Reitmans
The main advantage of trading using opposite SPTSX Dividend and Reitmans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Reitmans 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 Reitmans will offset losses from the drop in Reitmans' long position.| SPTSX Dividend vs. Westshore Terminals Investment | SPTSX Dividend vs. NorthWest Healthcare Properties | SPTSX Dividend vs. Leveljump Healthcare Corp | SPTSX Dividend vs. Highwood Asset Management |
| Reitmans vs. Canada Goose Holdings | Reitmans vs. Spin Master Corp | Reitmans vs. Aritzia | Reitmans vs. iShares Canadian HYBrid |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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