Correlation Between Hamilton Enhanced and Accelerate Arbitrage
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Accelerate Arbitrage 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 Enhanced and Accelerate Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Enhanced Canadian and Accelerate Arbitrage, you can compare the effects of market volatilities on Hamilton Enhanced and Accelerate Arbitrage 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 Enhanced with a short position of Accelerate Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Accelerate Arbitrage.
Diversification Opportunities for Hamilton Enhanced and Accelerate Arbitrage
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Accelerate is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Canadian and Accelerate Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Arbitrage and Hamilton Enhanced 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 Enhanced Canadian are associated (or correlated) with Accelerate Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Arbitrage has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Accelerate Arbitrage go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Accelerate Arbitrage
Assuming the 90 days trading horizon Hamilton Enhanced Canadian is expected to generate 0.52 times more return on investment than Accelerate Arbitrage. However, Hamilton Enhanced Canadian is 1.92 times less risky than Accelerate Arbitrage. It trades about 0.08 of its potential returns per unit of risk. Accelerate Arbitrage is currently generating about 0.02 per unit of risk. If you would invest 1,812 in Hamilton Enhanced Canadian on August 28, 2024 and sell it today you would earn a total of 724.00 from holding Hamilton Enhanced Canadian or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.02% |
| Values | Daily Returns |
Hamilton Enhanced Canadian vs. Accelerate Arbitrage
Performance |
| Timeline |
| Hamilton Enhanced |
| Accelerate Arbitrage |
Hamilton Enhanced and Accelerate Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Accelerate Arbitrage
The main advantage of trading using opposite Hamilton Enhanced and Accelerate Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Accelerate Arbitrage 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 Accelerate Arbitrage will offset losses from the drop in Accelerate Arbitrage's long position.| Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active |
| Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active | Accelerate Arbitrage vs. Global X Active |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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