Correlation Between SPTSX Dividend and BMO Equal
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BMO Equal Weight, you can compare the effects of market volatilities on SPTSX Dividend and BMO Equal 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 BMO Equal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BMO Equal.
Diversification Opportunities for SPTSX Dividend and BMO Equal
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPTSX and BMO is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BMO Equal Weight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Equal Weight 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 BMO Equal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Equal Weight has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BMO Equal go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BMO Equal
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.51 times more return on investment than BMO Equal. However, SPTSX Dividend Aristocrats is 1.95 times less risky than BMO Equal. It trades about -0.1 of its potential returns per unit of risk. BMO Equal Weight is currently generating about -0.16 per unit of risk. If you would invest 36,259 in SPTSX Dividend Aristocrats on December 1, 2024 and sell it today you would lose (467.00) from holding SPTSX Dividend Aristocrats or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BMO Equal Weight
Performance |
| Timeline |
SPTSX Dividend and BMO Equal Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BMO Equal Weight
Pair trading matchups for BMO Equal
Pair Trading with SPTSX Dividend and BMO Equal
The main advantage of trading using opposite SPTSX Dividend and BMO Equal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BMO Equal 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 BMO Equal will offset losses from the drop in BMO Equal's long position.| SPTSX Dividend vs. Wilmington Capital Management | SPTSX Dividend vs. Partners Value Investments | SPTSX Dividend vs. 2028 Investment Grade | SPTSX Dividend vs. Falcon Energy Materials |
| BMO Equal vs. BMO Short Term Bond | BMO Equal vs. BMO Canadian Bank | BMO Equal vs. BMO Aggregate Bond | BMO Equal vs. BMO Balanced ETF |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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