Correlation Between SPTSX Dividend and Conquest Resources

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SPTSX Dividend and Conquest Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SPTSX Dividend and Conquest Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Conquest Resources, you can compare the effects of market volatilities on SPTSX Dividend and Conquest Resources 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 Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Conquest Resources.

Diversification Opportunities for SPTSX Dividend and Conquest Resources

SPTSXConquestDiversified AwaySPTSXConquestDiversified Away100%
0.06
  Correlation Coefficient

Significant diversification

The 3 months correlation between SPTSX and Conquest is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Conquest Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest Resources 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 Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Conquest Resources go up and down completely randomly.
    Optimize

Pair Corralation between SPTSX Dividend and Conquest Resources

Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the Conquest Resources. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 19.94 times less risky than Conquest Resources. The index trades about -0.15 of its potential returns per unit of risk. The Conquest Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2.00  in Conquest Resources on November 24, 2024 and sell it today you would earn a total of  0.00  from holding Conquest Resources or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SPTSX Dividend Aristocrats  vs.  Conquest Resources

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 01020304050
JavaScript chart by amCharts 3.21.15GSPTXDV CQR
       Timeline  

SPTSX Dividend and Conquest Resources Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.92-0.67-0.42-0.17-0.03520.05160.20.450.70.95 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15GSPTXDV CQR
       Returns  

Pair Trading with SPTSX Dividend and Conquest Resources

The main advantage of trading using opposite SPTSX Dividend and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Conquest Resources 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.
The idea behind SPTSX Dividend Aristocrats and Conquest Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Commodity Directory
Find actively traded commodities issued by global exchanges
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas


 

Discover investing ideas

Utilize additional investing modules