Correlation Between Hamilton Enhanced and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and IShares ESG 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 IShares ESG 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 iShares ESG Growth, you can compare the effects of market volatilities on Hamilton Enhanced and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and IShares ESG.
Diversification Opportunities for Hamilton Enhanced and IShares ESG
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and IShares is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and iShares ESG Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Growth has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and IShares ESG go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and IShares ESG
Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 1.1 times less return on investment than IShares ESG. In addition to that, Hamilton Enhanced is 1.31 times more volatile than iShares ESG Growth. It trades about 0.1 of its total potential returns per unit of risk. iShares ESG Growth is currently generating about 0.14 per unit of volatility. If you would invest 3,997 in iShares ESG Growth on September 19, 2024 and sell it today you would earn a total of 1,908 from holding iShares ESG Growth or generate 47.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Multi Sector vs. iShares ESG Growth
Performance |
| Timeline |
| Hamilton Enhanced Multi |
| iShares ESG Growth |
Hamilton Enhanced and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and IShares ESG
The main advantage of trading using opposite Hamilton Enhanced and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| Hamilton Enhanced vs. Hamilton Enhanced Covered | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Real Estate E Commerce | Hamilton Enhanced vs. Global Dividend Growth |
| IShares ESG vs. Harvest Diversified Monthly | IShares ESG vs. Hamilton Canadian Financials | IShares ESG vs. Hamilton Enhanced Covered | IShares ESG vs. Hamilton Enhanced Multi Sector |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |