Correlation Between Global Dividend and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both Global Dividend and Hamilton Canadian 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 Global Dividend and Hamilton Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Dividend Growth and Hamilton Canadian Financials, you can compare the effects of market volatilities on Global Dividend and Hamilton Canadian 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 Global Dividend with a short position of Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Dividend and Hamilton Canadian.
Diversification Opportunities for Global Dividend and Hamilton Canadian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Hamilton is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Global Dividend Growth and Hamilton Canadian Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian and Global Dividend 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 Global Dividend Growth are associated (or correlated) with Hamilton Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian has no effect on the direction of Global Dividend i.e., Global Dividend and Hamilton Canadian go up and down completely randomly.
Pair Corralation between Global Dividend and Hamilton Canadian
Assuming the 90 days trading horizon Global Dividend is expected to generate 1.26 times less return on investment than Hamilton Canadian. In addition to that, Global Dividend is 2.08 times more volatile than Hamilton Canadian Financials. It trades about 0.1 of its total potential returns per unit of risk. Hamilton Canadian Financials is currently generating about 0.28 per unit of volatility. If you would invest 1,238 in Hamilton Canadian Financials on November 3, 2024 and sell it today you would earn a total of 235.00 from holding Hamilton Canadian Financials or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Dividend Growth vs. Hamilton Canadian Financials
Performance |
| Timeline |
| Global Dividend Growth |
| Hamilton Canadian |
Global Dividend and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Dividend and Hamilton Canadian
The main advantage of trading using opposite Global Dividend and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Dividend position performs unexpectedly, Hamilton Canadian 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 Canadian will offset losses from the drop in Hamilton Canadian's long position.| Global Dividend vs. E Split Corp | Global Dividend vs. Brompton Split Banc | Global Dividend vs. Life Banc Split | Global Dividend vs. Real Estate E Commerce |
| Hamilton Canadian vs. Hamilton Enhanced Covered | Hamilton Canadian vs. Hamilton Enhanced Multi Sector | Hamilton Canadian vs. Harvest Diversified Monthly | Hamilton Canadian vs. Brompton Enhanced Multi Asset |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |