Correlation Between Hamilton Global and Affluent Medical

Can any of the company-specific risk be diversified away by investing in both Hamilton Global and Affluent Medical 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 Global and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hamilton Global Opportunities and Affluent Medical SAS, you can compare the effects of market volatilities on Hamilton Global and Affluent Medical 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 Global with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Global and Affluent Medical.

Diversification Opportunities for Hamilton Global and Affluent Medical

-0.41

Correlation Coefficient

Hamilton Global  Affluent Medical

Very good diversification

The 3 months correlation between Hamilton and Affluent is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Global Opportunities and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Hamilton Global 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 Global Opportunities are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Hamilton Global i.e., Hamilton Global and Affluent Medical go up and down completely randomly.

Pair Corralation between Hamilton Global and Affluent Medical

Assuming the 90 days trading horizon Hamilton Global Opportunities is expected to under-perform the Affluent Medical. But the stock apears to be less risky and, when comparing its historical volatility, Hamilton Global Opportunities is 5.51 times less risky than Affluent Medical. The stock trades about -0.02 of its potential returns per unit of risk. The Affluent Medical SAS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  164.00  in Affluent Medical SAS on September 29, 2024 and sell it today you would lose (28.00) from holding Affluent Medical SAS or give up 17.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hamilton Global Opportunities  vs.  Affluent Medical SAS

Hamilton Global Oppo

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Global Opportunities are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Hamilton Global is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Affluent Medical SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affluent Medical SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hamilton Global and Affluent Medical

The main advantage of trading using opposite Hamilton Global and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Global position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.

The idea behind Hamilton Global Opportunities and Affluent Medical SAS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.