Correlation Between Harvest Healthcare and Hamilton Technology
Can any of the company-specific risk be diversified away by investing in both Harvest Healthcare and Hamilton Technology 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 Harvest Healthcare and Hamilton Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Healthcare Leaders and Hamilton Technology Yield, you can compare the effects of market volatilities on Harvest Healthcare and Hamilton Technology 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 Harvest Healthcare with a short position of Hamilton Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Healthcare and Hamilton Technology.
Diversification Opportunities for Harvest Healthcare and Hamilton Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harvest and Hamilton is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Healthcare Leaders and Hamilton Technology Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Technology Yield and Harvest Healthcare 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 Harvest Healthcare Leaders are associated (or correlated) with Hamilton Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Technology Yield has no effect on the direction of Harvest Healthcare i.e., Harvest Healthcare and Hamilton Technology go up and down completely randomly.
Pair Corralation between Harvest Healthcare and Hamilton Technology
Assuming the 90 days trading horizon Harvest Healthcare Leaders is expected to generate 0.45 times more return on investment than Hamilton Technology. However, Harvest Healthcare Leaders is 2.24 times less risky than Hamilton Technology. It trades about 0.34 of its potential returns per unit of risk. Hamilton Technology Yield is currently generating about 0.02 per unit of risk. If you would invest 768.00 in Harvest Healthcare Leaders on November 4, 2024 and sell it today you would earn a total of 44.00 from holding Harvest Healthcare Leaders or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Healthcare Leaders vs. Hamilton Technology Yield
Performance |
| Timeline |
| Harvest Healthcare |
| Hamilton Technology Yield |
Harvest Healthcare and Hamilton Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Healthcare and Hamilton Technology
The main advantage of trading using opposite Harvest Healthcare and Hamilton Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Healthcare position performs unexpectedly, Hamilton Technology 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 Technology will offset losses from the drop in Hamilton Technology's long position.| Harvest Healthcare vs. BMO Covered Call | Harvest Healthcare vs. First Asset Tech | Harvest Healthcare vs. Harvest Equal Weight | Harvest Healthcare vs. First Asset Energy |
| Hamilton Technology vs. Hamilton Equity YIELD | Hamilton Technology vs. Hamilton Enhanced Canadian | Hamilton Technology vs. Hamilton Australian Bank | Hamilton Technology vs. Hamilton MidSmall Cap Financials |
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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