Correlation Between SPTSX Dividend and Vanguard FTSE
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Vanguard FTSE Global, you can compare the effects of market volatilities on SPTSX Dividend and Vanguard FTSE 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 FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Vanguard FTSE.
Diversification Opportunities for SPTSX Dividend and Vanguard FTSE
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Vanguard is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Vanguard FTSE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE Global 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 FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE Global has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Vanguard FTSE go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Vanguard FTSE
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.36 times less return on investment than Vanguard FTSE. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.37 times less risky than Vanguard FTSE. It trades about 0.26 of its potential returns per unit of risk. Vanguard FTSE Global is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 6,115 in Vanguard FTSE Global on September 3, 2024 and sell it today you would earn a total of 385.00 from holding Vanguard FTSE Global or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Vanguard FTSE Global
Performance |
| Timeline |
SPTSX Dividend and Vanguard FTSE Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Vanguard FTSE Global
Pair trading matchups for Vanguard FTSE
Pair Trading with SPTSX Dividend and Vanguard FTSE
The main advantage of trading using opposite SPTSX Dividend and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Vanguard FTSE 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 FTSE will offset losses from the drop in Vanguard FTSE's long position.| SPTSX Dividend vs. 2028 Investment Grade | SPTSX Dividend vs. Upstart Investments | SPTSX Dividend vs. Brookfield Investments | SPTSX Dividend vs. Atrium Mortgage Investment |
| Vanguard FTSE vs. Vanguard FTSE Canada | Vanguard FTSE vs. Vanguard Canadian Aggregate | Vanguard FTSE vs. Vanguard Total Market | Vanguard FTSE vs. iShares Core MSCI |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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