Correlation Between Hampton Financial and Altagas Cum
Can any of the company-specific risk be diversified away by investing in both Hampton Financial and Altagas Cum 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 Hampton Financial and Altagas Cum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hampton Financial Corp and Altagas Cum Red, you can compare the effects of market volatilities on Hampton Financial and Altagas Cum 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 Hampton Financial with a short position of Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hampton Financial and Altagas Cum.
Diversification Opportunities for Hampton Financial and Altagas Cum
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hampton and Altagas is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hampton Financial Corp and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red and Hampton Financial 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 Hampton Financial Corp are associated (or correlated) with Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Hampton Financial i.e., Hampton Financial and Altagas Cum go up and down completely randomly.
Pair Corralation between Hampton Financial and Altagas Cum
Assuming the 90 days horizon Hampton Financial Corp is expected to under-perform the Altagas Cum. In addition to that, Hampton Financial is 2.27 times more volatile than Altagas Cum Red. It trades about -0.01 of its total potential returns per unit of risk. Altagas Cum Red is currently generating about 0.1 per unit of volatility. If you would invest 1,566 in Altagas Cum Red on September 19, 2024 and sell it today you would earn a total of 414.00 from holding Altagas Cum Red or generate 26.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hampton Financial Corp vs. Altagas Cum Red
Performance |
Timeline |
Hampton Financial Corp |
Altagas Cum Red |
Hampton Financial and Altagas Cum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hampton Financial and Altagas Cum
The main advantage of trading using opposite Hampton Financial and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hampton Financial position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.Hampton Financial vs. Slate Grocery REIT | Hampton Financial vs. Morguard Real Estate | Hampton Financial vs. iShares Canadian HYBrid | Hampton Financial vs. Altagas Cum Red |
Altagas Cum vs. EverGen Infrastructure Corp | Altagas Cum vs. Toronto Dominion Bank | Altagas Cum vs. HIVE Blockchain Technologies | Altagas Cum vs. Dividend Growth Split |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |