Correlation Between SPTSX Dividend and BMO Covered
Specify exactly 2 symbols:
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BMO Covered Call, you can compare the effects of market volatilities on SPTSX Dividend and BMO Covered 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 Covered. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BMO Covered.
Diversification Opportunities for SPTSX Dividend and BMO Covered
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and BMO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BMO Covered Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Covered Call 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 Covered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Covered Call has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BMO Covered go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BMO Covered
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 1.94 times less return on investment than BMO Covered. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.93 times less risky than BMO Covered. It trades about 0.42 of its potential returns per unit of risk. BMO Covered Call is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,625 in BMO Covered Call on September 1, 2024 and sell it today you would earn a total of 190.00 from holding BMO Covered Call or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BMO Covered Call
Performance |
| Timeline |
SPTSX Dividend and BMO Covered Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BMO Covered Call
Pair trading matchups for BMO Covered
Pair Trading with SPTSX Dividend and BMO Covered
The main advantage of trading using opposite SPTSX Dividend and BMO Covered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BMO Covered 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 Covered will offset losses from the drop in BMO Covered's long position.| SPTSX Dividend vs. Metalero Mining Corp | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. Dream Industrial Real | SPTSX Dividend vs. Nicola Mining |
| BMO Covered vs. BMO SP 500 | BMO Covered vs. Vanguard SP 500 | BMO Covered vs. Global X SP | BMO Covered vs. iShares Core SP |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |