Correlation Between Blockchain Technologies and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies 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 Blockchain Technologies and Hamilton Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Technologies ETF and Hamilton Canadian Bank, you can compare the effects of market volatilities on Blockchain Technologies 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 Blockchain Technologies with a short position of Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and Hamilton Canadian.
Diversification Opportunities for Blockchain Technologies and Hamilton Canadian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blockchain and Hamilton is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and Hamilton Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian Bank and Blockchain Technologies 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 Blockchain Technologies ETF 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 Bank has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and Hamilton Canadian go up and down completely randomly.
Pair Corralation between Blockchain Technologies and Hamilton Canadian
Assuming the 90 days trading horizon Blockchain Technologies ETF is expected to generate 14.49 times more return on investment than Hamilton Canadian. However, Blockchain Technologies is 14.49 times more volatile than Hamilton Canadian Bank. It trades about 0.28 of its potential returns per unit of risk. Hamilton Canadian Bank is currently generating about 0.76 per unit of risk. If you would invest 1,649 in Blockchain Technologies ETF on September 2, 2024 and sell it today you would earn a total of 468.00 from holding Blockchain Technologies ETF or generate 28.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Technologies ETF vs. Hamilton Canadian Bank
Performance |
| Timeline |
| Blockchain Technologies |
| Hamilton Canadian Bank |
Blockchain Technologies and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Technologies and Hamilton Canadian
The main advantage of trading using opposite Blockchain Technologies and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies 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.| Blockchain Technologies vs. Global X Big | Blockchain Technologies vs. Evolve Automobile Innovation | Blockchain Technologies vs. Evolve E Gaming Index | Blockchain Technologies vs. Evolve Cyber Security |
| Hamilton Canadian vs. Hamilton Equity Yield | Hamilton Canadian vs. Hamilton Enhanced Canadian | Hamilton Canadian vs. Hamilton Australian Bank | Hamilton Canadian vs. Hamilton MidSmall Cap Financials |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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