Correlation Between Winfarm and Hamilton Global

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

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

Diversification Opportunities for Winfarm and Hamilton Global

-0.73

Correlation Coefficient

Winfarm  Hamilton Global

Pay attention - limited upside

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

Pair Corralation between Winfarm and Hamilton Global

If you would invest  365.00  in Winfarm on September 29, 2024 and sell it today you would earn a total of  1.00  from holding Winfarm or generate 0.27% return on investment over 90 days.

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

Winfarm  vs.  Hamilton Global Opportunities

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.

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.

Pair Trading with Winfarm and Hamilton Global

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

The idea behind Winfarm and Hamilton Global Opportunities 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.