Correlation Between SPTSX Dividend and IShares Canadian
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and iShares Canadian HYBrid, you can compare the effects of market volatilities on SPTSX Dividend and IShares 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 IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and IShares Canadian.
Diversification Opportunities for SPTSX Dividend and IShares Canadian
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and IShares is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid 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 Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and IShares Canadian go up and down completely randomly.
Pair Corralation between SPTSX Dividend and IShares Canadian
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 1.72 times more return on investment than IShares Canadian. However, SPTSX Dividend is 1.72 times more volatile than iShares Canadian HYBrid. It trades about 0.19 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.09 per unit of risk. If you would invest 36,732 in SPTSX Dividend Aristocrats on August 28, 2024 and sell it today you would earn a total of 678.00 from holding SPTSX Dividend Aristocrats or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. iShares Canadian HYBrid
Performance |
| Timeline |
SPTSX Dividend and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
iShares Canadian HYBrid
Pair trading matchups for IShares Canadian
Pair Trading with SPTSX Dividend and IShares Canadian
The main advantage of trading using opposite SPTSX Dividend and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, IShares 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| SPTSX Dividend vs. VIP Entertainment Technologies | SPTSX Dividend vs. Primaris Retail RE | SPTSX Dividend vs. SalesforceCom CDR | SPTSX Dividend vs. Contagious Gaming |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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