Correlation Between SPTSX Dividend and Western Resources
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Western Resources Corp, you can compare the effects of market volatilities on SPTSX Dividend and Western Resources 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 Western Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Western Resources.
Diversification Opportunities for SPTSX Dividend and Western Resources
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTSX and Western is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Western Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Resources Corp 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 Western Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Resources Corp has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Western Resources go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Western Resources
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 5.71 times less return on investment than Western Resources. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 17.61 times less risky than Western Resources. It trades about 0.37 of its potential returns per unit of risk. Western Resources Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Western Resources Corp on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Western Resources Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Western Resources Corp
Performance |
| Timeline |
SPTSX Dividend and Western Resources Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Western Resources Corp
Pair trading matchups for Western Resources
Pair Trading with SPTSX Dividend and Western Resources
The main advantage of trading using opposite SPTSX Dividend and Western Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Western Resources 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 Western Resources will offset losses from the drop in Western Resources' long position.| SPTSX Dividend vs. Vizsla Silver Corp | SPTSX Dividend vs. Globex Mining Enterprises | SPTSX Dividend vs. Arizona Gold Silver | SPTSX Dividend vs. Renoworks Software |
| Western Resources vs. Kiplin Metals | Western Resources vs. Noram Lithium Corp | Western Resources vs. Minnova Corp |
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.
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