Correlation Between Hamilton Canadian and Global X
Can any of the company-specific risk be diversified away by investing in both Hamilton Canadian and Global X 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 Hamilton Canadian and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Canadian Bank and Global X Equal, you can compare the effects of market volatilities on Hamilton Canadian and Global X 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 Hamilton Canadian with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Canadian and Global X.
Diversification Opportunities for Hamilton Canadian and Global X
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and Global is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Canadian Bank and Global X Equal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Equal and Hamilton Canadian 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 Hamilton Canadian Bank are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Equal has no effect on the direction of Hamilton Canadian i.e., Hamilton Canadian and Global X go up and down completely randomly.
Pair Corralation between Hamilton Canadian and Global X
Assuming the 90 days trading horizon Hamilton Canadian Bank is expected to generate 1.18 times more return on investment than Global X. However, Hamilton Canadian is 1.18 times more volatile than Global X Equal. It trades about 0.36 of its potential returns per unit of risk. Global X Equal is currently generating about 0.38 per unit of risk. If you would invest 2,316 in Hamilton Canadian Bank on August 28, 2024 and sell it today you would earn a total of 95.00 from holding Hamilton Canadian Bank or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Canadian Bank vs. Global X Equal
Performance |
| Timeline |
| Hamilton Canadian Bank |
| Global X Equal |
Hamilton Canadian and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Canadian and Global X
The main advantage of trading using opposite Hamilton Canadian and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Canadian position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Hamilton Canadian vs. Brompton Global Dividend | Hamilton Canadian vs. Tech Leaders Income | Hamilton Canadian vs. Global Healthcare Income | Hamilton Canadian vs. Brompton European Dividend |
| Global X vs. Global X Equal | Global X vs. Global X SPTSX | Global X vs. Global X Canadian | Global X vs. Global X SP |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |