Correlation Between Hamilton Enhanced and 3iQ CoinShares

Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and 3iQ CoinShares 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 Enhanced and 3iQ CoinShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hamilton Enhanced Multi Sector and 3iQ CoinShares Ether, you can compare the effects of market volatilities on Hamilton Enhanced and 3iQ CoinShares 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 Enhanced with a short position of 3iQ CoinShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and 3iQ CoinShares.

Diversification Opportunities for Hamilton Enhanced and 3iQ CoinShares

0.8

Correlation Coefficient

Hamilton Enhanced  3iQ CoinShares

Very poor diversification

The 3 months correlation between Hamilton and 3iQ is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and 3iQ CoinShares Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3iQ CoinShares Ether and Hamilton Enhanced 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 Enhanced Multi Sector are associated (or correlated) with 3iQ CoinShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3iQ CoinShares Ether has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and 3iQ CoinShares go up and down completely randomly.

Pair Corralation between Hamilton Enhanced and 3iQ CoinShares

Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 10.46 times less return on investment than 3iQ CoinShares. But when comparing it to its historical volatility, Hamilton Enhanced Multi Sector is 8.7 times less risky than 3iQ CoinShares. It trades about 0.35 of its potential returns per unit of risk. 3iQ CoinShares Ether is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest  1,326  in 3iQ CoinShares Ether on September 5, 2024 and sell it today you would earn a total of  827.00  from holding 3iQ CoinShares Ether or generate 62.37% return on investment over 90 days.

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

Hamilton Enhanced Multi Sector  vs.  3iQ CoinShares Ether

Hamilton Enhanced Multi

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Enhanced Multi Sector are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Enhanced may actually be approaching a critical reversion point that can send shares even higher in January 2025.

3iQ CoinShares Ether

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 3iQ CoinShares Ether are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, 3iQ CoinShares displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hamilton Enhanced and 3iQ CoinShares

The main advantage of trading using opposite Hamilton Enhanced and 3iQ CoinShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, 3iQ CoinShares 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 3iQ CoinShares will offset losses from the drop in 3iQ CoinShares' long position.

The idea behind Hamilton Enhanced Multi Sector and 3iQ CoinShares Ether 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.