Correlation Between SPTSX Dividend and Topicus
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Topicus, you can compare the effects of market volatilities on SPTSX Dividend and Topicus 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 Topicus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Topicus.
Diversification Opportunities for SPTSX Dividend and Topicus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Topicus is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Topicus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topicus 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 Topicus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topicus has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Topicus go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Topicus
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 4.16 times less return on investment than Topicus. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.85 times less risky than Topicus. It trades about 0.05 of its potential returns per unit of risk. Topicus is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,702 in Topicus on November 19, 2024 and sell it today you would earn a total of 6,048 from holding Topicus or generate 69.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Topicus
Performance |
| Timeline |
SPTSX Dividend and Topicus Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Topicus
Pair trading matchups for Topicus
Pair Trading with SPTSX Dividend and Topicus
The main advantage of trading using opposite SPTSX Dividend and Topicus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Topicus 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 Topicus will offset losses from the drop in Topicus' long position.| SPTSX Dividend vs. NeXGold Mining Corp | SPTSX Dividend vs. Magna Mining | SPTSX Dividend vs. Nicola Mining | SPTSX Dividend vs. Kootenay Silver |
| Topicus vs. Constellation Software | Topicus vs. Converge Technology Solutions | Topicus vs. Enghouse Systems | Topicus vs. Dye Durham |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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