SP Preferred Correlations

SPPREF Index   669.16  4.49  0.67%   
The current 90-days correlation between SP Preferred Stock and BCE Inc is 0.12 (i.e., Average diversification). The correlation of SP Preferred is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
The ability to find closely correlated positions to SP Preferred could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SP Preferred when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SP Preferred - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SP Preferred Stock to buy it.

Moving against SPPREF Index

  0.73SOFI SoFi Technologies Aggressive PushPairCorr
  0.71GLBE Global E OnlinePairCorr
  0.68BMYMP Bristol Myers SquibbPairCorr
  0.68DORM Dorman ProductsPairCorr
  0.65FDP Fresh Del MontePairCorr
  0.64BAC Bank of America Fiscal Year End 10th of January 2025 PairCorr
  0.62AMZN Amazon IncPairCorr
  0.61BBAI BigBearai HoldingsPairCorr
  0.61SOUN SoundHound AI Upward RallyPairCorr
  0.51GOOG Alphabet Class C Aggressive PushPairCorr
  0.48FUND Sprott Focus TrustPairCorr
  0.48ELFNX Elfun Trusts ElfunPairCorr
  0.43NVDA NVIDIAPairCorr
  0.38AAPL Apple Inc Aggressive PushPairCorr
  0.36LGCY Legacy EducationPairCorr
  0.3455607PAE5 MQGAU 5376057 23PairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
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High negative correlations   
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Risk-Adjusted Indicators

There is a big difference between SPPREF Index performing well and SP Preferred Index doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze SP Preferred's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

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SP Preferred Distribution of Returns

   Predicted Return Density   
       Returns  
SP Preferred's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how sppref index's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a SP Preferred Price Volatility?

Several factors can influence a index's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

SP Preferred Against Global Markets

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