Correlation Between SPTSX Dividend and IShares High
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and iShares High Dividend, you can compare the effects of market volatilities on SPTSX Dividend and IShares High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and IShares High.
Diversification Opportunities for SPTSX Dividend and IShares High
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and IShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and iShares High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares High Dividend 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares High Dividend has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and IShares High go up and down completely randomly.
Pair Corralation between SPTSX Dividend and IShares High
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.94 times more return on investment than IShares High. However, SPTSX Dividend Aristocrats is 1.06 times less risky than IShares High. It trades about 0.07 of its potential returns per unit of risk. iShares High Dividend is currently generating about 0.06 per unit of risk. If you would invest 30,385 in SPTSX Dividend Aristocrats on August 26, 2024 and sell it today you would earn a total of 6,975 from holding SPTSX Dividend Aristocrats or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. iShares High Dividend
Performance |
| Timeline |
SPTSX Dividend and IShares High Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
iShares High Dividend
Pair trading matchups for IShares High
Pair Trading with SPTSX Dividend and IShares High
The main advantage of trading using opposite SPTSX Dividend and IShares High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, IShares High 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 High will offset losses from the drop in IShares High's long position.| SPTSX Dividend vs. Contagious Gaming | SPTSX Dividend vs. Gamehost | SPTSX Dividend vs. Ramp Metals | SPTSX Dividend vs. Air Canada |
| IShares High vs. BMO Europe High | IShares High vs. BMO Covered Call | IShares High vs. BMO Covered Call | IShares High vs. BMO Europe High |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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