Correlation Between 3iQ CoinShares and Hamilton Enhanced
Can any of the company-specific risk be diversified away by investing in both 3iQ CoinShares 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 3iQ CoinShares and Hamilton Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3iQ CoinShares Ether and Hamilton Enhanced Covered, you can compare the effects of market volatilities on 3iQ CoinShares 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 3iQ CoinShares with a short position of Hamilton Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ CoinShares and Hamilton Enhanced.
Diversification Opportunities for 3iQ CoinShares and Hamilton Enhanced
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 3iQ and Hamilton is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ CoinShares Ether and Hamilton Enhanced Covered in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced Covered and 3iQ CoinShares 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 3iQ CoinShares Ether 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 Covered has no effect on the direction of 3iQ CoinShares i.e., 3iQ CoinShares and Hamilton Enhanced go up and down completely randomly.
Pair Corralation between 3iQ CoinShares and Hamilton Enhanced
Assuming the 90 days trading horizon 3iQ CoinShares Ether is expected to generate 4.42 times more return on investment than Hamilton Enhanced. However, 3iQ CoinShares is 4.42 times more volatile than Hamilton Enhanced Covered. It trades about 0.08 of its potential returns per unit of risk. Hamilton Enhanced Covered is currently generating about 0.11 per unit of risk. If you would invest 663.00 in 3iQ CoinShares Ether on September 12, 2024 and sell it today you would earn a total of 1,370 from holding 3iQ CoinShares Ether or generate 206.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
3iQ CoinShares Ether vs. Hamilton Enhanced Covered
Performance |
| Timeline |
| 3iQ CoinShares Ether |
| Hamilton Enhanced Covered |
3iQ CoinShares and Hamilton Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3iQ CoinShares and Hamilton Enhanced
The main advantage of trading using opposite 3iQ CoinShares and Hamilton Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ CoinShares 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.| 3iQ CoinShares vs. 3iQ Bitcoin ETF | 3iQ CoinShares vs. NBI High Yield | 3iQ CoinShares vs. NBI Unconstrained Fixed | 3iQ CoinShares vs. Mackenzie Developed ex North |
| Hamilton Enhanced vs. Hamilton Enhanced Multi Sector | Hamilton Enhanced vs. Harvest Diversified Monthly | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Global Dividend Growth |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |