Correlation Between Blockchain Technologies and Hamilton REITs
Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies and Hamilton REITs 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 REITs 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 REITs YIELD, you can compare the effects of market volatilities on Blockchain Technologies and Hamilton REITs 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 REITs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and Hamilton REITs.
Diversification Opportunities for Blockchain Technologies and Hamilton REITs
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blockchain and Hamilton is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and Hamilton REITs YIELD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton REITs YIELD 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 REITs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton REITs YIELD has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and Hamilton REITs go up and down completely randomly.
Pair Corralation between Blockchain Technologies and Hamilton REITs
Assuming the 90 days trading horizon Blockchain Technologies ETF is expected to generate 7.07 times more return on investment than Hamilton REITs. However, Blockchain Technologies is 7.07 times more volatile than Hamilton REITs YIELD. It trades about 0.18 of its potential returns per unit of risk. Hamilton REITs YIELD is currently generating about -0.18 per unit of risk. If you would invest 1,718 in Blockchain Technologies ETF on August 24, 2024 and sell it today you would earn a total of 286.00 from holding Blockchain Technologies ETF or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Blockchain Technologies ETF vs. Hamilton REITs YIELD
Performance |
| Timeline |
| Blockchain Technologies |
| Hamilton REITs YIELD |
Blockchain Technologies and Hamilton REITs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Technologies and Hamilton REITs
The main advantage of trading using opposite Blockchain Technologies and Hamilton REITs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies position performs unexpectedly, Hamilton REITs 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 REITs will offset losses from the drop in Hamilton REITs' long position.| Blockchain Technologies vs. Evolve Cyber Security | Blockchain Technologies vs. Evolve Automobile Innovation | Blockchain Technologies vs. Global X Big | Blockchain Technologies vs. Evolve E Gaming Index |
| Hamilton REITs vs. Hamilton Equity Yield | Hamilton REITs vs. Hamilton Enhanced Canadian | Hamilton REITs vs. Hamilton Australian Bank | Hamilton REITs 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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