Correlation Between SPTSX Dividend and Vanguard Canadian
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Vanguard Canadian Aggregate, you can compare the effects of market volatilities on SPTSX Dividend and Vanguard Canadian 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 Vanguard Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Vanguard Canadian.
Diversification Opportunities for SPTSX Dividend and Vanguard Canadian
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Vanguard is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Vanguard Canadian Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Canadian 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 Vanguard Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Canadian has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Vanguard Canadian go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Vanguard Canadian
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.81 times more return on investment than Vanguard Canadian. However, SPTSX Dividend Aristocrats is 1.24 times less risky than Vanguard Canadian. It trades about 0.42 of its potential returns per unit of risk. Vanguard Canadian Aggregate is currently generating about 0.18 per unit of risk. If you would invest 36,294 in SPTSX Dividend Aristocrats on September 1, 2024 and sell it today you would earn a total of 1,277 from holding SPTSX Dividend Aristocrats or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Vanguard Canadian Aggregate
Performance |
| Timeline |
SPTSX Dividend and Vanguard Canadian Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Vanguard Canadian Aggregate
Pair trading matchups for Vanguard Canadian
Pair Trading with SPTSX Dividend and Vanguard Canadian
The main advantage of trading using opposite SPTSX Dividend and Vanguard Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Vanguard Canadian 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 Vanguard Canadian will offset losses from the drop in Vanguard Canadian's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| Vanguard Canadian vs. Vanguard Canadian Short | Vanguard Canadian vs. Vanguard FTSE Canada | Vanguard Canadian vs. Vanguard FTSE Global | Vanguard Canadian vs. Vanguard FTSE Emerging |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |