Correlation Between Hamilton Enhanced and Bitcoin ETF
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Bitcoin ETF 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 Bitcoin ETF 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 Bitcoin ETF CAD, you can compare the effects of market volatilities on Hamilton Enhanced and Bitcoin ETF 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 Bitcoin ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Bitcoin ETF.
Diversification Opportunities for Hamilton Enhanced and Bitcoin ETF
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and Bitcoin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Covered and Bitcoin ETF CAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin ETF 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 Bitcoin ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin ETF CAD has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Bitcoin ETF go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Bitcoin ETF
Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 7.73 times less return on investment than Bitcoin ETF. But when comparing it to its historical volatility, Hamilton Enhanced Covered is 4.48 times less risky than Bitcoin ETF. It trades about 0.13 of its potential returns per unit of risk. Bitcoin ETF CAD is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,470 in Bitcoin ETF CAD on September 13, 2024 and sell it today you would earn a total of 669.00 from holding Bitcoin ETF CAD or generate 14.97% 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. Bitcoin ETF CAD
Performance |
| Timeline |
| Hamilton Enhanced Covered |
| Bitcoin ETF CAD |
Hamilton Enhanced and Bitcoin ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Bitcoin ETF
The main advantage of trading using opposite Hamilton Enhanced and Bitcoin ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Bitcoin ETF 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 Bitcoin ETF will offset losses from the drop in Bitcoin ETF's long position.| Hamilton Enhanced vs. Hamilton Enhanced Multi Sector | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Real Estate E Commerce | Hamilton Enhanced vs. Global Dividend Growth |
| Bitcoin ETF vs. 3iQ Bitcoin ETF | Bitcoin ETF vs. Purpose Bitcoin CAD | Bitcoin ETF vs. BMO Aggregate Bond | Bitcoin ETF vs. iShares Canadian HYBrid |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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