Correlation Between Hamilton Enhanced and IShares Core
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and IShares Core 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 IShares Core 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 iShares Core Growth, you can compare the effects of market volatilities on Hamilton Enhanced and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and IShares Core.
Diversification Opportunities for Hamilton Enhanced and IShares Core
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and IShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Covered and iShares Core Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Growth 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Growth has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and IShares Core go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and IShares Core
Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 1.04 times less return on investment than IShares Core. In addition to that, Hamilton Enhanced is 1.75 times more volatile than iShares Core Growth. It trades about 0.21 of its total potential returns per unit of risk. iShares Core Growth is currently generating about 0.38 per unit of volatility. If you would invest 3,022 in iShares Core Growth on September 19, 2024 and sell it today you would earn a total of 89.00 from holding iShares Core Growth or generate 2.95% 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. iShares Core Growth
Performance |
| Timeline |
| Hamilton Enhanced Covered |
| iShares Core Growth |
Hamilton Enhanced and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and IShares Core
The main advantage of trading using opposite Hamilton Enhanced and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. Harvest Diversified Monthly | IShares Core vs. Hamilton Canadian Financials | IShares Core vs. Hamilton Enhanced Covered | IShares Core 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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