Correlation Between BetaPro SPTSX and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX 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 BetaPro SPTSX and Hamilton Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SPTSX 60 and Hamilton Canadian Financials, you can compare the effects of market volatilities on BetaPro SPTSX 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 BetaPro SPTSX with a short position of Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and Hamilton Canadian.
Diversification Opportunities for BetaPro SPTSX and Hamilton Canadian
-0.98 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and Hamilton is -0.98. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 and Hamilton Canadian Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian and BetaPro SPTSX 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 SPTSX 60 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 has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and Hamilton Canadian go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and Hamilton Canadian
Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the Hamilton Canadian. In addition to that, BetaPro SPTSX is 2.18 times more volatile than Hamilton Canadian Financials. It trades about -0.12 of its total potential returns per unit of risk. Hamilton Canadian Financials is currently generating about 0.17 per unit of volatility. If you would invest 1,269 in Hamilton Canadian Financials on September 3, 2024 and sell it today you would earn a total of 220.00 from holding Hamilton Canadian Financials or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SPTSX 60 vs. Hamilton Canadian Financials
Performance |
| Timeline |
| BetaPro SPTSX 60 |
| Hamilton Canadian |
BetaPro SPTSX and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and Hamilton Canadian
The main advantage of trading using opposite BetaPro SPTSX and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX 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.| BetaPro SPTSX vs. BetaPro SP TSX | BetaPro SPTSX vs. BetaPro SP TSX | BetaPro SPTSX vs. BetaPro SPTSX Capped | BetaPro SPTSX vs. BetaPro Gold Bullion |
| 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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |