Correlation Between Hamilton Enhanced and Purpose Bitcoin
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Purpose Bitcoin 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 Purpose Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Enhanced Covered and Purpose Bitcoin CAD, you can compare the effects of market volatilities on Hamilton Enhanced and Purpose Bitcoin 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 Purpose Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Purpose Bitcoin.
Diversification Opportunities for Hamilton Enhanced and Purpose Bitcoin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and Purpose is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Covered and Purpose Bitcoin CAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purpose Bitcoin CAD 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 Covered are associated (or correlated) with Purpose Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purpose Bitcoin CAD has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Purpose Bitcoin go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Purpose Bitcoin
Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 5.6 times less return on investment than Purpose Bitcoin. But when comparing it to its historical volatility, Hamilton Enhanced Covered is 4.58 times less risky than Purpose Bitcoin. It trades about 0.35 of its potential returns per unit of risk. Purpose Bitcoin CAD is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 1,254 in Purpose Bitcoin CAD on September 5, 2024 and sell it today you would earn a total of 592.00 from holding Purpose Bitcoin CAD or generate 47.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Covered vs. Purpose Bitcoin CAD
Performance |
| Timeline |
| Hamilton Enhanced Covered |
| Purpose Bitcoin CAD |
Hamilton Enhanced and Purpose Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Purpose Bitcoin
The main advantage of trading using opposite Hamilton Enhanced and Purpose Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Purpose Bitcoin 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 Purpose Bitcoin will offset losses from the drop in Purpose Bitcoin's long position.| Hamilton Enhanced vs. Hamilton Enhanced Multi Sector | Hamilton Enhanced vs. Harvest Diversified Monthly | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Global Dividend Growth |
| Purpose Bitcoin vs. Hamilton Enhanced Covered | Purpose Bitcoin vs. Global Dividend Growth | Purpose Bitcoin vs. Hamilton Enhanced Multi Sector | Purpose Bitcoin vs. Harvest Diversified Monthly |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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