Correlation Between SPTSX Dividend and Tourmaline Oil
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Tourmaline Oil Corp, you can compare the effects of market volatilities on SPTSX Dividend and Tourmaline Oil 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 Tourmaline Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Tourmaline Oil.
Diversification Opportunities for SPTSX Dividend and Tourmaline Oil
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and Tourmaline is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Tourmaline Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourmaline Oil Corp 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 Tourmaline Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourmaline Oil Corp has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Tourmaline Oil go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Tourmaline Oil
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.64 times less return on investment than Tourmaline Oil. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 4.12 times less risky than Tourmaline Oil. It trades about 0.25 of its potential returns per unit of risk. Tourmaline Oil Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,093 in Tourmaline Oil Corp on August 28, 2024 and sell it today you would earn a total of 711.00 from holding Tourmaline Oil Corp or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Tourmaline Oil Corp
Performance |
| Timeline |
SPTSX Dividend and Tourmaline Oil Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Tourmaline Oil Corp
Pair trading matchups for Tourmaline Oil
Pair Trading with SPTSX Dividend and Tourmaline Oil
The main advantage of trading using opposite SPTSX Dividend and Tourmaline Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Tourmaline Oil 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 Tourmaline Oil will offset losses from the drop in Tourmaline Oil's long position.| SPTSX Dividend vs. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| Tourmaline Oil vs. ARC Resources | Tourmaline Oil vs. Whitecap Resources | Tourmaline Oil vs. MEG Energy Corp | Tourmaline Oil vs. Birchcliff Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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