Correlation Between Hamilton Enhanced and IA Clarington
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and IA Clarington 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 IA Clarington 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 IA Clarington Loomis, you can compare the effects of market volatilities on Hamilton Enhanced and IA Clarington 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 IA Clarington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and IA Clarington.
Diversification Opportunities for Hamilton Enhanced and IA Clarington
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and IGAF is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Covered and IA Clarington Loomis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Clarington Loomis 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 IA Clarington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Clarington Loomis has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and IA Clarington go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and IA Clarington
Assuming the 90 days trading horizon Hamilton Enhanced Covered is expected to generate 1.39 times more return on investment than IA Clarington. However, Hamilton Enhanced is 1.39 times more volatile than IA Clarington Loomis. It trades about 0.13 of its potential returns per unit of risk. IA Clarington Loomis is currently generating about 0.14 per unit of risk. If you would invest 1,054 in Hamilton Enhanced Covered on September 14, 2024 and sell it today you would earn a total of 373.00 from holding Hamilton Enhanced Covered or generate 35.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Covered vs. IA Clarington Loomis
Performance |
| Timeline |
| Hamilton Enhanced Covered |
| IA Clarington Loomis |
Hamilton Enhanced and IA Clarington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and IA Clarington
The main advantage of trading using opposite Hamilton Enhanced and IA Clarington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, IA Clarington 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 IA Clarington will offset losses from the drop in IA Clarington'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 |
| IA Clarington vs. Harvest Diversified Monthly | IA Clarington vs. Hamilton Canadian Financials | IA Clarington vs. Hamilton Enhanced Covered | IA Clarington vs. Hamilton Enhanced Multi Sector |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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