Correlation Between Altareit and Hamilton Global

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

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

Diversification Opportunities for Altareit and Hamilton Global

0.0

Correlation Coefficient

Altareit  Hamilton Global

Pay attention - limited upside

The 3 months correlation between Altareit and Hamilton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altareit 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 Altareit 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 Altareit 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 Altareit i.e., Altareit and Hamilton Global go up and down completely randomly.

Pair Corralation between Altareit and Hamilton Global

If you would invest  46,800  in Altareit on September 28, 2024 and sell it today you would earn a total of  200.00  from holding Altareit or generate 0.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Altareit  vs.  Hamilton Global Opportunities

Altareit

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altareit are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Altareit is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Hamilton Global Oppo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hamilton Global Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Altareit and Hamilton Global

The main advantage of trading using opposite Altareit and Hamilton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altareit 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 Altareit 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.