Correlation Between Hamilton Enhanced and Real Estate

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

Diversification Opportunities for Hamilton Enhanced and Real Estate

0.97

Correlation Coefficient

Hamilton Enhanced  Real Estate

Almost no diversification

The 3 months correlation between Hamilton and Real is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and Real Estate E Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate E 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate E has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Real Estate go up and down completely randomly.

Pair Corralation between Hamilton Enhanced and Real Estate

Assuming the 90 days trading horizon Hamilton Enhanced is expected to generate 1.23 times less return on investment than Real Estate. But when comparing it to its historical volatility, Hamilton Enhanced Multi Sector is 2.16 times less risky than Real Estate. It trades about 0.54 of its potential returns per unit of risk. Real Estate E Commerce is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  850.00  in Real Estate E Commerce on April 21, 2025 and sell it today you would earn a total of  176.00  from holding Real Estate E Commerce or generate 20.71% return on investment over 90 days.

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

Hamilton Enhanced Multi Sector  vs.  Real Estate E Commerce

Hamilton Enhanced Multi

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Enhanced Multi Sector are ranked lower than 42 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Enhanced displayed solid returns over the last few months and may actually be approaching a breakup point.

Real Estate E

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Real Estate E Commerce are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Real Estate displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hamilton Enhanced and Real Estate

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

The idea behind Hamilton Enhanced Multi Sector and Real Estate E Commerce 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.