Correlation Between Accelerate Arbitrage and Hamilton Enhanced
Can any of the company-specific risk be diversified away by investing in both Accelerate Arbitrage and Hamilton Enhanced 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 Accelerate Arbitrage and Hamilton Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Arbitrage and Hamilton Enhanced Multi Sector, you can compare the effects of market volatilities on Accelerate Arbitrage and Hamilton Enhanced 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 Accelerate Arbitrage with a short position of Hamilton Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Arbitrage and Hamilton Enhanced.
Diversification Opportunities for Accelerate Arbitrage and Hamilton Enhanced
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accelerate and Hamilton is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Arbitrage and Hamilton Enhanced Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced Multi and Accelerate 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 Accelerate Arbitrage are associated (or correlated) with Hamilton Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Enhanced Multi has no effect on the direction of Accelerate Arbitrage i.e., Accelerate Arbitrage and Hamilton Enhanced go up and down completely randomly.
Pair Corralation between Accelerate Arbitrage and Hamilton Enhanced
Assuming the 90 days trading horizon Accelerate Arbitrage is expected to generate 4.41 times less return on investment than Hamilton Enhanced. But when comparing it to its historical volatility, Accelerate Arbitrage is 1.12 times less risky than Hamilton Enhanced. It trades about 0.04 of its potential returns per unit of risk. Hamilton Enhanced Multi Sector is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,777 in Hamilton Enhanced Multi Sector on August 29, 2024 and sell it today you would earn a total of 42.00 from holding Hamilton Enhanced Multi Sector or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accelerate Arbitrage vs. Hamilton Enhanced Multi Sector
Performance |
| Timeline |
| Accelerate Arbitrage |
| Hamilton Enhanced Multi |
Accelerate Arbitrage and Hamilton Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accelerate Arbitrage and Hamilton Enhanced
The main advantage of trading using opposite Accelerate Arbitrage and Hamilton Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Arbitrage position performs unexpectedly, Hamilton Enhanced 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 Enhanced will offset losses from the drop in Hamilton Enhanced's long position.| Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active |
| Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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