Correlation Between SPTSX Dividend and Southern Empire
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Southern Empire Resources, you can compare the effects of market volatilities on SPTSX Dividend and Southern Empire 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 Southern Empire. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Southern Empire.
Diversification Opportunities for SPTSX Dividend and Southern Empire
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and Southern is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Southern Empire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Empire 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 Southern Empire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Empire Resources has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Southern Empire go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Southern Empire
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.05 times more return on investment than Southern Empire. However, SPTSX Dividend Aristocrats is 18.74 times less risky than Southern Empire. It trades about 0.33 of its potential returns per unit of risk. Southern Empire Resources is currently generating about -0.21 per unit of risk. If you would invest 34,073 in SPTSX Dividend Aristocrats on August 29, 2024 and sell it today you would earn a total of 3,217 from holding SPTSX Dividend Aristocrats or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Southern Empire Resources
Performance |
| Timeline |
SPTSX Dividend and Southern Empire Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Southern Empire Resources
Pair trading matchups for Southern Empire
Pair Trading with SPTSX Dividend and Southern Empire
The main advantage of trading using opposite SPTSX Dividend and Southern Empire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Southern Empire 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 Southern Empire will offset losses from the drop in Southern Empire's long position.| SPTSX Dividend vs. Thunderbird Entertainment Group | SPTSX Dividend vs. Firan Technology Group | SPTSX Dividend vs. Computer Modelling Group | SPTSX Dividend vs. Northstar Clean Technologies |
| Southern Empire vs. Rover Metals Corp | Southern Empire vs. Patagonia Gold Corp | Southern Empire vs. Gold Terra Resource | Southern Empire vs. Awale Resources |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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