Correlation Between SPTSX Dividend and Uniteds
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Uniteds Limited, you can compare the effects of market volatilities on SPTSX Dividend and Uniteds 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 Uniteds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Uniteds.
Diversification Opportunities for SPTSX Dividend and Uniteds
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Uniteds is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Uniteds Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniteds Limited 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 Uniteds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniteds Limited has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Uniteds go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Uniteds
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.36 times less return on investment than Uniteds. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.84 times less risky than Uniteds. It trades about 0.15 of its potential returns per unit of risk. Uniteds Limited is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 12,699 in Uniteds Limited on August 29, 2024 and sell it today you would earn a total of 456.00 from holding Uniteds Limited or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Uniteds Limited
Performance |
| Timeline |
SPTSX Dividend and Uniteds Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Uniteds Limited
Pair trading matchups for Uniteds
Pair Trading with SPTSX Dividend and Uniteds
The main advantage of trading using opposite SPTSX Dividend and Uniteds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Uniteds 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 Uniteds will offset losses from the drop in Uniteds' 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 |
| Uniteds vs. Economic Investment Trust | Uniteds vs. Canadian General Investments | Uniteds vs. E L Financial Corp | Uniteds vs. Clairvest Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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