Correlation Between Hamilton Enhanced and First Asset
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and First Asset 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 First Asset 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 First Asset Tech, you can compare the effects of market volatilities on Hamilton Enhanced and First Asset 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 First Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and First Asset.
Diversification Opportunities for Hamilton Enhanced and First Asset
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and First is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and First Asset Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Asset Tech 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 First Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Asset Tech has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and First Asset go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and First Asset
Assuming the 90 days trading horizon Hamilton Enhanced Multi Sector is expected to generate 0.56 times more return on investment than First Asset. However, Hamilton Enhanced Multi Sector is 1.77 times less risky than First Asset. It trades about 0.17 of its potential returns per unit of risk. First Asset Tech is currently generating about 0.03 per unit of risk. If you would invest 1,772 in Hamilton Enhanced Multi Sector on August 26, 2024 and sell it today you would earn a total of 48.00 from holding Hamilton Enhanced Multi Sector or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Multi Sector vs. First Asset Tech
Performance |
| Timeline |
| Hamilton Enhanced Multi |
| First Asset Tech |
Hamilton Enhanced and First Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and First Asset
The main advantage of trading using opposite Hamilton Enhanced and First Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, First Asset 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 First Asset will offset losses from the drop in First Asset's long position.| Hamilton Enhanced vs. Hamilton Enhanced Covered | Hamilton Enhanced vs. Harvest Diversified Monthly | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Global Dividend Growth |
| First Asset vs. First Asset Energy | First Asset vs. CI Gold Giants | First Asset vs. Harvest Healthcare Leaders | First Asset 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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