Correlation Between SPTSX Dividend and Vanguard Total
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Vanguard Total Market, you can compare the effects of market volatilities on SPTSX Dividend and Vanguard Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Vanguard Total.
Diversification Opportunities for SPTSX Dividend and Vanguard Total
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Vanguard is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Vanguard Total Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Market 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Market has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Vanguard Total go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Vanguard Total
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.0 times less return on investment than Vanguard Total. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 2.34 times less risky than Vanguard Total. It trades about 0.42 of its potential returns per unit of risk. Vanguard Total Market is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 10,646 in Vanguard Total Market on September 1, 2024 and sell it today you would earn a total of 793.00 from holding Vanguard Total Market or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Vanguard Total Market
Performance |
| Timeline |
SPTSX Dividend and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Vanguard Total Market
Pair trading matchups for Vanguard Total
Pair Trading with SPTSX Dividend and Vanguard Total
The main advantage of trading using opposite SPTSX Dividend and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Vanguard Total 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 Total will offset losses from the drop in Vanguard Total'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 Total vs. Vanguard FTSE Canada | Vanguard Total vs. Vanguard FTSE Emerging | Vanguard Total vs. iShares Core MSCI | Vanguard Total vs. Vanguard Canadian Aggregate |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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