Correlation Between SPTSX Dividend and Transat AT
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Transat AT, you can compare the effects of market volatilities on SPTSX Dividend and Transat AT 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 Transat AT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Transat AT.
Diversification Opportunities for SPTSX Dividend and Transat AT
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Transat is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Transat AT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transat AT 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 Transat AT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transat AT has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Transat AT go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Transat AT
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.27 times more return on investment than Transat AT. However, SPTSX Dividend Aristocrats is 3.64 times less risky than Transat AT. It trades about 0.07 of its potential returns per unit of risk. Transat AT is currently generating about -0.04 per unit of risk. If you would invest 30,272 in SPTSX Dividend Aristocrats on August 29, 2024 and sell it today you would earn a total of 7,097 from holding SPTSX Dividend Aristocrats or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Transat AT
Performance |
| Timeline |
SPTSX Dividend and Transat AT Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Transat AT
Pair trading matchups for Transat AT
Pair Trading with SPTSX Dividend and Transat AT
The main advantage of trading using opposite SPTSX Dividend and Transat AT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Transat AT 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 Transat AT will offset losses from the drop in Transat AT'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 |
| Transat AT vs. Chorus Aviation | Transat AT vs. Cineplex | Transat AT vs. Lion Electric Corp | Transat AT vs. Air Canada |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |