Correlation Between SPTSX Dividend and Stellar AfricaGold
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Stellar AfricaGold, you can compare the effects of market volatilities on SPTSX Dividend and Stellar AfricaGold 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 Stellar AfricaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Stellar AfricaGold.
Diversification Opportunities for SPTSX Dividend and Stellar AfricaGold
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Stellar is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Stellar AfricaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar AfricaGold 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 Stellar AfricaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar AfricaGold has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Stellar AfricaGold go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Stellar AfricaGold
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 14.39 times less return on investment than Stellar AfricaGold. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 30.62 times less risky than Stellar AfricaGold. It trades about 0.21 of its potential returns per unit of risk. Stellar AfricaGold is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Stellar AfricaGold on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Stellar AfricaGold or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Stellar AfricaGold
Performance |
| Timeline |
SPTSX Dividend and Stellar AfricaGold Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Stellar AfricaGold
Pair trading matchups for Stellar AfricaGold
Pair Trading with SPTSX Dividend and Stellar AfricaGold
The main advantage of trading using opposite SPTSX Dividend and Stellar AfricaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Stellar AfricaGold 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 Stellar AfricaGold will offset losses from the drop in Stellar AfricaGold's long position.| SPTSX Dividend vs. Sangoma Technologies Corp | SPTSX Dividend vs. Champion Gaming Group | SPTSX Dividend vs. Quorum Information Technologies | SPTSX Dividend vs. NextSource Materials |
| Stellar AfricaGold vs. Richmond Minerals | Stellar AfricaGold vs. Societe d Exploration | Stellar AfricaGold vs. Tesoro Minerals 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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