Correlation Between Hamilton Enhanced and Global X
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Global X 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 Global X 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 Global X Active, you can compare the effects of market volatilities on Hamilton Enhanced and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Global X.
Diversification Opportunities for Hamilton Enhanced and Global X
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Global is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Covered and Global X Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Active 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Active has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Global X go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Global X
Assuming the 90 days trading horizon Hamilton Enhanced Covered is expected to generate 2.46 times more return on investment than Global X. However, Hamilton Enhanced is 2.46 times more volatile than Global X Active. It trades about 0.11 of its potential returns per unit of risk. Global X Active is currently generating about 0.11 per unit of risk. If you would invest 1,244 in Hamilton Enhanced Covered on September 3, 2024 and sell it today you would earn a total of 186.00 from holding Hamilton Enhanced Covered or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Covered vs. Global X Active
Performance |
| Timeline |
| Hamilton Enhanced Covered |
| Global X Active |
Hamilton Enhanced and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Global X
The main advantage of trading using opposite Hamilton Enhanced and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active | Hamilton Enhanced vs. Global X Active |
| Global X vs. iShares Canadian Government | Global X vs. iShares Canadian Short | Global X vs. iShares Core Canadian | Global X vs. iShares Canadian Real |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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