Correlation Between Hamilton Global and Winfarm

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

Diversification Opportunities for Hamilton Global and Winfarm

-0.73

Correlation Coefficient

Hamilton Global  Winfarm

Pay attention - limited upside

The 3 months correlation between Hamilton and Winfarm is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Global Opportunities and Winfarm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winfarm 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 Winfarm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winfarm has no effect on the direction of Hamilton Global i.e., Hamilton Global and Winfarm go up and down completely randomly.

Pair Corralation between Hamilton Global and Winfarm

If you would invest  368.00  in Winfarm on September 30, 2024 and sell it today you would lose (2.00) from holding Winfarm or give up 0.54% of portfolio value over 90 days.

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

Hamilton Global Opportunities  vs.  Winfarm

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.

Winfarm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winfarm 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 Winfarm

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

The idea behind Hamilton Global Opportunities and Winfarm 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.