Correlation Between VersaBank and SPTSX Dividend
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By analyzing existing cross correlation between VersaBank and SPTSX Dividend Aristocrats, you can compare the effects of market volatilities on VersaBank and SPTSX Dividend 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 VersaBank with a short position of SPTSX Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of VersaBank and SPTSX Dividend.
Diversification Opportunities for VersaBank and SPTSX Dividend
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VersaBank and SPTSX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding VersaBank and SPTSX Dividend Aristocrats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPTSX Dividend Arist and VersaBank 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 VersaBank are associated (or correlated) with SPTSX Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPTSX Dividend Arist has no effect on the direction of VersaBank i.e., VersaBank and SPTSX Dividend go up and down completely randomly.
Pair Corralation between VersaBank and SPTSX Dividend
Assuming the 90 days trading horizon VersaBank is expected to under-perform the SPTSX Dividend. In addition to that, VersaBank is 8.37 times more volatile than SPTSX Dividend Aristocrats. It trades about -0.02 of its total potential returns per unit of risk. SPTSX Dividend Aristocrats is currently generating about -0.01 per unit of volatility. If you would invest 36,901 in SPTSX Dividend Aristocrats on September 13, 2024 and sell it today you would lose (23.00) from holding SPTSX Dividend Aristocrats or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VersaBank vs. SPTSX Dividend Aristocrats
Performance |
| Timeline |
VersaBank and SPTSX Dividend Volatility Contrast
Predicted Return Density |
| Returns |
VersaBank
Pair trading matchups for VersaBank
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Pair Trading with VersaBank and SPTSX Dividend
The main advantage of trading using opposite VersaBank and SPTSX Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VersaBank position performs unexpectedly, SPTSX Dividend 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 SPTSX Dividend will offset losses from the drop in SPTSX Dividend's long position.| VersaBank vs. Sylogist | VersaBank vs. Sangoma Technologies Corp | VersaBank vs. Firan Technology Group | VersaBank vs. Hammond Power Solutions |
| SPTSX Dividend vs. Westshore Terminals Investment | SPTSX Dividend vs. NorthWest Healthcare Properties | SPTSX Dividend vs. Leveljump Healthcare Corp | SPTSX Dividend vs. Highwood Asset Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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