Correlation Between Hamilton Enhanced and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Hamilton Canadian 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 Hamilton Canadian 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 Hamilton Canadian Bank, you can compare the effects of market volatilities on Hamilton Enhanced and Hamilton Canadian 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 Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Hamilton Canadian.
Diversification Opportunities for Hamilton Enhanced and Hamilton Canadian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and Hamilton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Canadian and Hamilton Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian Bank 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 Hamilton Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian Bank has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Hamilton Canadian go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Hamilton Canadian
Assuming the 90 days trading horizon Hamilton Enhanced Canadian is expected to generate 1.6 times more return on investment than Hamilton Canadian. However, Hamilton Enhanced is 1.6 times more volatile than Hamilton Canadian Bank. It trades about 0.38 of its potential returns per unit of risk. Hamilton Canadian Bank is currently generating about 0.36 per unit of risk. If you would invest 1,872 in Hamilton Enhanced Canadian on August 28, 2024 and sell it today you would earn a total of 124.00 from holding Hamilton Enhanced Canadian or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hamilton Enhanced Canadian vs. Hamilton Canadian Bank
Performance |
| Timeline |
| Hamilton Enhanced |
| Hamilton Canadian Bank |
Hamilton Enhanced and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Hamilton Canadian
The main advantage of trading using opposite Hamilton Enhanced and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Hamilton Canadian 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 Hamilton Canadian will offset losses from the drop in Hamilton Canadian'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 |
| Hamilton Canadian vs. Brompton Global Dividend | Hamilton Canadian vs. Tech Leaders Income | Hamilton Canadian vs. Global Healthcare Income | Hamilton Canadian vs. Brompton European Dividend |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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