Correlation Between Hamilton Enhanced and Harvest Global
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Harvest Global 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 Harvest Global 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 Harvest Global REIT, you can compare the effects of market volatilities on Hamilton Enhanced and Harvest Global 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 Harvest Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Harvest Global.
Diversification Opportunities for Hamilton Enhanced and Harvest Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hamilton and Harvest is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Canadian and Harvest Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Global REIT 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 Harvest Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Global REIT has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Harvest Global go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Harvest Global
Assuming the 90 days trading horizon Hamilton Enhanced Canadian is expected to generate 0.94 times more return on investment than Harvest Global. However, Hamilton Enhanced Canadian is 1.07 times less risky than Harvest Global. It trades about 0.13 of its potential returns per unit of risk. Harvest Global REIT is currently generating about 0.05 per unit of risk. If you would invest 1,723 in Hamilton Enhanced Canadian on September 12, 2024 and sell it today you would earn a total of 839.00 from holding Hamilton Enhanced Canadian or generate 48.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hamilton Enhanced Canadian vs. Harvest Global REIT
Performance |
Timeline |
Hamilton Enhanced |
Harvest Global REIT |
Hamilton Enhanced and Harvest Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hamilton Enhanced and Harvest Global
The main advantage of trading using opposite Hamilton Enhanced and Harvest Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Harvest Global 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 Harvest Global will offset losses from the drop in Harvest Global's long position.Hamilton Enhanced vs. Hamilton Enhanced Multi Sector | Hamilton Enhanced vs. Hamilton Enhanced Covered | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Harvest Diversified Monthly |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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