Correlation Between SPTSX Dividend and New Found
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and New Found Gold, you can compare the effects of market volatilities on SPTSX Dividend and New Found 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 New Found. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and New Found.
Diversification Opportunities for SPTSX Dividend and New Found
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and New is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and New Found Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Found Gold 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 New Found. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Found Gold has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and New Found go up and down completely randomly.
Pair Corralation between SPTSX Dividend and New Found
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the New Found. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 7.17 times less risky than New Found. The index trades about -0.13 of its potential returns per unit of risk. The New Found Gold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 253.00 in New Found Gold on December 2, 2024 and sell it today you would earn a total of 14.00 from holding New Found Gold or generate 5.53% 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. New Found Gold
Performance |
Timeline |
SPTSX Dividend and New Found Volatility Contrast
Predicted Return Density |
Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
New Found Gold
Pair trading matchups for New Found
Pair Trading with SPTSX Dividend and New Found
The main advantage of trading using opposite SPTSX Dividend and New Found positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, New Found 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 New Found will offset losses from the drop in New Found's long position.SPTSX Dividend vs. Canlan Ice Sports | SPTSX Dividend vs. Storage Vault Canada | SPTSX Dividend vs. Andean Precious Metals | SPTSX Dividend vs. Titanium Transportation Group |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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