Correlation Between Hamilton Canadian and E Split
Can any of the company-specific risk be diversified away by investing in both Hamilton Canadian and E Split 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 Canadian and E Split into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Canadian Financials and E Split Corp, you can compare the effects of market volatilities on Hamilton Canadian and E Split 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 Canadian with a short position of E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Canadian and E Split.
Diversification Opportunities for Hamilton Canadian and E Split
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and ENS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Canadian Financials and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split Corp and Hamilton Canadian 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 Canadian Financials are associated (or correlated) with E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of Hamilton Canadian i.e., Hamilton Canadian and E Split go up and down completely randomly.
Pair Corralation between Hamilton Canadian and E Split
Assuming the 90 days trading horizon Hamilton Canadian is expected to generate 1.26 times less return on investment than E Split. But when comparing it to its historical volatility, Hamilton Canadian Financials is 1.95 times less risky than E Split. It trades about 0.28 of its potential returns per unit of risk. E Split Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,155 in E Split Corp on November 3, 2024 and sell it today you would earn a total of 278.00 from holding E Split Corp or generate 24.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Canadian Financials vs. E Split Corp
Performance |
| Timeline |
| Hamilton Canadian |
| E Split Corp |
Hamilton Canadian and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Canadian and E Split
The main advantage of trading using opposite Hamilton Canadian and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Canadian position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| Hamilton Canadian vs. Hamilton Enhanced Covered | Hamilton Canadian vs. Hamilton Enhanced Multi Sector | Hamilton Canadian vs. Harvest Diversified Monthly | Hamilton Canadian vs. Brompton Enhanced Multi Asset |
| E Split vs. Global Dividend Growth | E Split vs. Real Estate E Commerce | E Split vs. Life Banc Split | E Split vs. Brompton Split Banc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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