Correlation Between SPTSX Dividend and RTSI Index
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and RTSI Index, you can compare the effects of market volatilities on SPTSX Dividend and RTSI Index 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 RTSI Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and RTSI Index.
Diversification Opportunities for SPTSX Dividend and RTSI Index
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPTSX and RTSI is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and RTSI Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTSI Index 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 RTSI Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTSI Index has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and RTSI Index go up and down completely randomly.
Pair Corralation between SPTSX Dividend and RTSI Index
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the RTSI Index. In addition to that, SPTSX Dividend is 1.04 times more volatile than RTSI Index. It trades about -0.18 of its total potential returns per unit of risk. RTSI Index is currently generating about 0.3 per unit of volatility. If you would invest 114,730 in RTSI Index on January 30, 2024 and sell it today you would earn a total of 4,119 from holding RTSI Index or generate 3.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SPTSX Dividend Aristocrats vs. RTSI Index
Performance |
Timeline |
SPTSX Dividend and RTSI Index Volatility Contrast
Predicted Return Density |
Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
RTSI Index
Pair trading matchups for RTSI Index
Pair Trading with SPTSX Dividend and RTSI Index
The main advantage of trading using opposite SPTSX Dividend and RTSI Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, RTSI Index 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 RTSI Index will offset losses from the drop in RTSI Index's long position.SPTSX Dividend vs. Diversified Royalty Corp | SPTSX Dividend vs. Bip Investment Corp | SPTSX Dividend vs. CNJ Capital Investments | SPTSX Dividend vs. Brookfield Investments |
RTSI Index vs. KAMAZ Publicly Traded | RTSI Index vs. Novolipetsk Steel PAO | RTSI Index vs. Sovcombank | RTSI Index vs. Chelyabinsk Metallurg Kombinat |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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