Correlation Between Hamilton Global and NFL Biosciences

Can any of the company-specific risk be diversified away by investing in both Hamilton Global and NFL Biosciences 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 NFL Biosciences 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 NFL Biosciences SAS, you can compare the effects of market volatilities on Hamilton Global and NFL Biosciences 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 NFL Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Global and NFL Biosciences.

Diversification Opportunities for Hamilton Global and NFL Biosciences

-0.23

Correlation Coefficient

Hamilton Global  NFL Biosciences

Very good diversification

The 3 months correlation between Hamilton and NFL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Global Opportunities and NFL Biosciences SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFL Biosciences 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 NFL Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFL Biosciences SAS has no effect on the direction of Hamilton Global i.e., Hamilton Global and NFL Biosciences go up and down completely randomly.

Pair Corralation between Hamilton Global and NFL Biosciences

If you would invest  4,320  in Hamilton Global Opportunities on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Hamilton Global Opportunities or generate 0.0% return on investment over 90 days.

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

Hamilton Global Opportunities  vs.  NFL Biosciences 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.

NFL Biosciences SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NFL Biosciences SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Hamilton Global and NFL Biosciences

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

The idea behind Hamilton Global Opportunities and NFL Biosciences 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.