Correlation Between Vanguard FTSE and Hamilton REITs
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE and Hamilton REITs 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 Vanguard FTSE and Hamilton REITs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard FTSE Canadian and Hamilton REITs YIELD, you can compare the effects of market volatilities on Vanguard FTSE and Hamilton REITs 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 Vanguard FTSE with a short position of Hamilton REITs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and Hamilton REITs.
Diversification Opportunities for Vanguard FTSE and Hamilton REITs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and Hamilton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Canadian and Hamilton REITs YIELD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton REITs YIELD and Vanguard FTSE 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 Vanguard FTSE Canadian are associated (or correlated) with Hamilton REITs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton REITs YIELD has no effect on the direction of Vanguard FTSE i.e., Vanguard FTSE and Hamilton REITs go up and down completely randomly.
Pair Corralation between Vanguard FTSE and Hamilton REITs
If you would invest (100.00) in Hamilton REITs YIELD on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Hamilton REITs YIELD or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vanguard FTSE Canadian vs. Hamilton REITs YIELD
Performance |
| Timeline |
| Vanguard FTSE Canadian |
| Hamilton REITs YIELD |
Vanguard FTSE and Hamilton REITs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and Hamilton REITs
The main advantage of trading using opposite Vanguard FTSE and Hamilton REITs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE position performs unexpectedly, Hamilton REITs 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 Hamilton REITs will offset losses from the drop in Hamilton REITs' long position.| Vanguard FTSE vs. iShares SPTSX Capped | Vanguard FTSE vs. iShares Canadian Select | Vanguard FTSE vs. iShares SPTSX Capped | Vanguard FTSE vs. iShares Diversified Monthly |
| Hamilton REITs vs. Hamilton Equity Yield | Hamilton REITs vs. Hamilton Enhanced Canadian | Hamilton REITs vs. Hamilton Australian Bank | Hamilton REITs vs. Hamilton MidSmall Cap Financials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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