Correlation Between SPTSX Dividend and IShares SP
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and iShares SP Global, you can compare the effects of market volatilities on SPTSX Dividend and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and IShares SP.
Diversification Opportunities for SPTSX Dividend and IShares SP
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPTSX and IShares is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and iShares SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Global has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and IShares SP go up and down completely randomly.
Pair Corralation between SPTSX Dividend and IShares SP
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the IShares SP. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 1.64 times less risky than IShares SP. The index trades about -0.01 of its potential returns per unit of risk. The iShares SP Global is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 5,787 in iShares SP Global on September 13, 2024 and sell it today you would earn a total of 384.00 from holding iShares SP Global or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. iShares SP Global
Performance |
| Timeline |
SPTSX Dividend and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
iShares SP Global
Pair trading matchups for IShares SP
Pair Trading with SPTSX Dividend and IShares SP
The main advantage of trading using opposite SPTSX Dividend and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| SPTSX Dividend vs. Westshore Terminals Investment | SPTSX Dividend vs. NorthWest Healthcare Properties | SPTSX Dividend vs. Leveljump Healthcare Corp | SPTSX Dividend vs. Highwood Asset Management |
| IShares SP vs. iShares SP Global | IShares SP vs. iShares SPTSX Capped | IShares SP vs. iShares Global Healthcare | IShares SP vs. iShares Global Infrastructure |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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