Correlation Between ECN Capital and Dividend
Can any of the company-specific risk be diversified away by investing in both ECN Capital and Dividend 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 ECN Capital and Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECN Capital Corp and Dividend 15 Split, you can compare the effects of market volatilities on ECN Capital and 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 ECN Capital with a short position of Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECN Capital and Dividend.
Diversification Opportunities for ECN Capital and Dividend
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ECN and Dividend is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ECN Capital Corp and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split and ECN Capital 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 ECN Capital Corp are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of ECN Capital i.e., ECN Capital and Dividend go up and down completely randomly.
Pair Corralation between ECN Capital and Dividend
Assuming the 90 days trading horizon ECN Capital Corp is expected to under-perform the Dividend. In addition to that, ECN Capital is 3.8 times more volatile than Dividend 15 Split. It trades about -0.07 of its total potential returns per unit of risk. Dividend 15 Split is currently generating about 0.35 per unit of volatility. If you would invest 610.00 in Dividend 15 Split on July 22, 2025 and sell it today you would earn a total of 70.00 from holding Dividend 15 Split or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECN Capital Corp vs. Dividend 15 Split
Performance |
| Timeline |
| ECN Capital Corp |
| Dividend 15 Split |
ECN Capital and Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECN Capital and Dividend
The main advantage of trading using opposite ECN Capital and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECN Capital position performs unexpectedly, 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 Dividend will offset losses from the drop in Dividend's long position.| ECN Capital vs. MCAN Mortgage | ECN Capital vs. Dominion Lending Centres | ECN Capital vs. Propel Holdings | ECN Capital vs. Financial 15 Split |
| Dividend vs. Premium Income | Dividend vs. Stack Capital Group | Dividend vs. Global Dividend Growth | Dividend vs. Canadian Life Companies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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