Correlation Between SPTSX Dividend and BMO Short
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BMO Short Federal, you can compare the effects of market volatilities on SPTSX Dividend and BMO Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BMO Short.
Diversification Opportunities for SPTSX Dividend and BMO Short
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPTSX and BMO is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BMO Short Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Short Federal 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Short Federal has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BMO Short go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BMO Short
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the BMO Short. In addition to that, SPTSX Dividend is 2.17 times more volatile than BMO Short Federal. It trades about -0.01 of its total potential returns per unit of risk. BMO Short Federal is currently generating about 0.2 per unit of volatility. If you would invest 2,190 in BMO Short Federal on September 13, 2024 and sell it today you would earn a total of 17.00 from holding BMO Short Federal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BMO Short Federal
Performance |
| Timeline |
SPTSX Dividend and BMO Short Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BMO Short Federal
Pair trading matchups for BMO Short
Pair Trading with SPTSX Dividend and BMO Short
The main advantage of trading using opposite SPTSX Dividend and BMO Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BMO Short 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 Short will offset losses from the drop in BMO Short'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 |
| BMO Short vs. iShares SPTSX 60 | BMO Short vs. iShares Core SP | BMO Short vs. iShares Core SPTSX | BMO Short vs. BMO Aggregate Bond |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |