Correlation Between SPTSX Dividend and Xtract One
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Xtract One Technologies, you can compare the effects of market volatilities on SPTSX Dividend and Xtract One 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 Xtract One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Xtract One.
Diversification Opportunities for SPTSX Dividend and Xtract One
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPTSX and Xtract is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Xtract One Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtract One Technologies 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 Xtract One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtract One Technologies has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Xtract One go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Xtract One
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.33 times less return on investment than Xtract One. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 5.99 times less risky than Xtract One. It trades about 0.07 of its potential returns per unit of risk. Xtract One Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 60.00 in Xtract One Technologies on August 24, 2024 and sell it today you would earn a total of 9.00 from holding Xtract One Technologies or generate 15.0% 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. Xtract One Technologies
Performance |
| Timeline |
SPTSX Dividend and Xtract One Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Xtract One Technologies
Pair trading matchups for Xtract One
Pair Trading with SPTSX Dividend and Xtract One
The main advantage of trading using opposite SPTSX Dividend and Xtract One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Xtract One 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 Xtract One will offset losses from the drop in Xtract One's long position.| SPTSX Dividend vs. Diamond Estates Wines | SPTSX Dividend vs. Ocumetics Technology Corp | SPTSX Dividend vs. Mako Mining Corp | SPTSX Dividend vs. American Hotel Income |
| Xtract One vs. Forstrong Global Income | Xtract One vs. Terreno Resources Corp | Xtract One vs. iShares Canadian HYBrid | Xtract One vs. Brompton European Dividend |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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