Correlation Between SPTSX Dividend and BMO Floating
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and BMO Floating Rate, you can compare the effects of market volatilities on SPTSX Dividend and BMO Floating 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 Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and BMO Floating.
Diversification Opportunities for SPTSX Dividend and BMO Floating
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPTSX and BMO is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and BMO Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Floating Rate 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 Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Floating Rate has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and BMO Floating go up and down completely randomly.
Pair Corralation between SPTSX Dividend and BMO Floating
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the BMO Floating. In addition to that, SPTSX Dividend is 2.36 times more volatile than BMO Floating Rate. It trades about -0.02 of its total potential returns per unit of risk. BMO Floating Rate is currently generating about -0.02 per unit of volatility. If you would invest 1,478 in BMO Floating Rate on December 30, 2024 and sell it today you would lose (5.00) from holding BMO Floating Rate or give up 0.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SPTSX Dividend Aristocrats vs. BMO Floating Rate
Performance |
Timeline |
SPTSX Dividend and BMO Floating Volatility Contrast
Predicted Return Density |
Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
BMO Floating Rate
Pair trading matchups for BMO Floating
Pair Trading with SPTSX Dividend and BMO Floating
The main advantage of trading using opposite SPTSX Dividend and BMO Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, BMO Floating 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 Floating will offset losses from the drop in BMO Floating's long position.SPTSX Dividend vs. iA Financial | SPTSX Dividend vs. E L Financial Corp | SPTSX Dividend vs. Air Canada | SPTSX Dividend vs. Altair Resources |
BMO Floating vs. BMO Emerging Markets | BMO Floating vs. BMO Long Corporate | BMO Floating vs. BMO High Yield | BMO Floating vs. BMO Mid Corporate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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