Correlation Between SPTSX Dividend and Sigma Lithium
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Sigma Lithium Resources, you can compare the effects of market volatilities on SPTSX Dividend and Sigma Lithium 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 Sigma Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Sigma Lithium.
Diversification Opportunities for SPTSX Dividend and Sigma Lithium
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Sigma is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Sigma Lithium Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigma Lithium Resources 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 Sigma Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigma Lithium Resources has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Sigma Lithium go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Sigma Lithium
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.11 times more return on investment than Sigma Lithium. However, SPTSX Dividend Aristocrats is 9.35 times less risky than Sigma Lithium. It trades about 0.42 of its potential returns per unit of risk. Sigma Lithium Resources is currently generating about 0.0 per unit of risk. If you would invest 36,294 in SPTSX Dividend Aristocrats on September 1, 2024 and sell it today you would earn a total of 1,277 from holding SPTSX Dividend Aristocrats or generate 3.52% 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. Sigma Lithium Resources
Performance |
| Timeline |
SPTSX Dividend and Sigma Lithium Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Sigma Lithium Resources
Pair trading matchups for Sigma Lithium
Pair Trading with SPTSX Dividend and Sigma Lithium
The main advantage of trading using opposite SPTSX Dividend and Sigma Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Sigma Lithium 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 Sigma Lithium will offset losses from the drop in Sigma Lithium's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| Sigma Lithium vs. Kiplin Metals | Sigma Lithium vs. Pure Energy Minerals | Sigma Lithium vs. Noram Lithium Corp | Sigma Lithium vs. Minnova Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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