Correlation Between Hamilton Enhanced and Global Dividend
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Global Dividend 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 Global Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Enhanced Multi Sector and Global Dividend Growth, you can compare the effects of market volatilities on Hamilton Enhanced and Global Dividend 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 Global Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Global Dividend.
Diversification Opportunities for Hamilton Enhanced and Global Dividend
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and Global is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and Global Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Dividend Growth 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 Multi Sector are associated (or correlated) with Global Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Dividend Growth has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Global Dividend go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Global Dividend
Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 2.53 times less return on investment than Global Dividend. But when comparing it to its historical volatility, Hamilton Enhanced Multi Sector is 2.06 times less risky than Global Dividend. It trades about 0.16 of its potential returns per unit of risk. Global Dividend Growth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Global Dividend Growth on August 25, 2024 and sell it today you would earn a total of 70.00 from holding Global Dividend Growth or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hamilton Enhanced Multi Sector vs. Global Dividend Growth
Performance |
| Timeline |
| Hamilton Enhanced Multi |
| Global Dividend Growth |
Hamilton Enhanced and Global Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Global Dividend
The main advantage of trading using opposite Hamilton Enhanced and Global Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Global Dividend 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 Dividend will offset losses from the drop in Global Dividend'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 |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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