Correlation Between Winfarm and Hamilton Global
Can any of the company-specific risk be diversified away by investing in both Winfarm 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 Winfarm and Hamilton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winfarm and Hamilton Global Opportunities, you can compare the effects of market volatilities on Winfarm 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 Winfarm with a short position of Hamilton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winfarm and Hamilton Global.
Diversification Opportunities for Winfarm and Hamilton Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Winfarm and Hamilton is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Winfarm 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 Winfarm 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 Winfarm 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 Winfarm i.e., Winfarm and Hamilton Global go up and down completely randomly.
Pair Corralation between Winfarm and Hamilton Global
Assuming the 90 days trading horizon Winfarm is expected to under-perform the Hamilton Global. In addition to that, Winfarm is 2.06 times more volatile than Hamilton Global Opportunities. It trades about -0.2 of its total potential returns per unit of risk. Hamilton Global Opportunities is currently generating about 0.0 per unit of volatility. If you would invest 4,320 in Hamilton Global Opportunities on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Hamilton Global Opportunities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winfarm vs. Hamilton Global Opportunities
Performance |
| Timeline |
| Winfarm |
| Hamilton Global Oppo |
Winfarm and Hamilton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winfarm and Hamilton Global
The main advantage of trading using opposite Winfarm and Hamilton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winfarm 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.The idea behind Winfarm and Hamilton Global Opportunities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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