Correlation Between BetaPro NASDAQ and Hamilton Enhanced
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and Hamilton Enhanced 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 BetaPro NASDAQ and Hamilton Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro NASDAQ 100 2x and Hamilton Enhanced Multi Sector, you can compare the effects of market volatilities on BetaPro NASDAQ and Hamilton Enhanced 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 BetaPro NASDAQ with a short position of Hamilton Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and Hamilton Enhanced.
Diversification Opportunities for BetaPro NASDAQ and Hamilton Enhanced
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Hamilton is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and Hamilton Enhanced Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced Multi and BetaPro NASDAQ 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 BetaPro NASDAQ 100 2x are associated (or correlated) with Hamilton Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Enhanced Multi has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and Hamilton Enhanced go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and Hamilton Enhanced
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to generate 18.45 times more return on investment than Hamilton Enhanced. However, BetaPro NASDAQ is 18.45 times more volatile than Hamilton Enhanced Multi Sector. It trades about 0.03 of its potential returns per unit of risk. Hamilton Enhanced Multi Sector is currently generating about 0.09 per unit of risk. If you would invest 797.00 in BetaPro NASDAQ 100 2x on September 3, 2024 and sell it today you would earn a total of 258.00 from holding BetaPro NASDAQ 100 2x or generate 32.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. Hamilton Enhanced Multi Sector
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| Hamilton Enhanced Multi |
BetaPro NASDAQ and Hamilton Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and Hamilton Enhanced
The main advantage of trading using opposite BetaPro NASDAQ and Hamilton Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, Hamilton Enhanced 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 Enhanced will offset losses from the drop in Hamilton Enhanced's long position.| BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro NASDAQ 100 2x | BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro SPTSX 60 |
| Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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