Correlation Between ABC Arbitrage and Hamilton Global
Can any of the company-specific risk be diversified away by investing in both ABC Arbitrage and Hamilton Global 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 ABC Arbitrage and Hamilton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABC arbitrage SA and Hamilton Global Opportunities, you can compare the effects of market volatilities on ABC Arbitrage and Hamilton Global 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 ABC Arbitrage with a short position of Hamilton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABC Arbitrage and Hamilton Global.
Diversification Opportunities for ABC Arbitrage and Hamilton Global
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABC and Hamilton is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ABC arbitrage SA and Hamilton Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Global Oppo and ABC Arbitrage 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 ABC arbitrage SA are associated (or correlated) with Hamilton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Global Oppo has no effect on the direction of ABC Arbitrage i.e., ABC Arbitrage and Hamilton Global go up and down completely randomly.
Pair Corralation between ABC Arbitrage and Hamilton Global
Assuming the 90 days trading horizon ABC arbitrage SA is expected to generate 1.33 times more return on investment than Hamilton Global. However, ABC Arbitrage is 1.33 times more volatile than Hamilton Global Opportunities. It trades about 0.39 of its potential returns per unit of risk. Hamilton Global Opportunities is currently generating about 0.0 per unit of risk. If you would invest 475.00 in ABC arbitrage SA on November 9, 2024 and sell it today you would earn a total of 43.00 from holding ABC arbitrage SA or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABC arbitrage SA vs. Hamilton Global Opportunities
Performance |
| Timeline |
| ABC arbitrage SA |
| Hamilton Global Oppo |
ABC Arbitrage and Hamilton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABC Arbitrage and Hamilton Global
The main advantage of trading using opposite ABC Arbitrage and Hamilton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABC Arbitrage position performs unexpectedly, Hamilton Global 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 Hamilton Global will offset losses from the drop in Hamilton Global's long position.| ABC Arbitrage vs. CBO Territoria SA | ABC Arbitrage vs. Rubis SCA | ABC Arbitrage vs. Nexity | ABC Arbitrage vs. Gaztransport Technigaz SAS |
| Hamilton Global vs. Affluent Medical SAS | Hamilton Global vs. NFL Biosciences SAS | Hamilton Global vs. Omer Decugis Cie | Hamilton Global vs. Winfarm |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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