Correlation Between CI Gold and Hamilton Enhanced

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

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

Diversification Opportunities for CI Gold and Hamilton Enhanced

-0.2

Correlation Coefficient

CI Gold  Hamilton Enhanced

Good diversification

The 3 months correlation between CGXF and Hamilton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and Hamilton Enhanced Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced Multi and CI Gold 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 CI Gold Giants are associated (or correlated) with Hamilton Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Enhanced Multi has no effect on the direction of CI Gold i.e., CI Gold and Hamilton Enhanced go up and down completely randomly.

Pair Corralation between CI Gold and Hamilton Enhanced

Assuming the 90 days trading horizon CI Gold is expected to generate 1.94 times less return on investment than Hamilton Enhanced. In addition to that, CI Gold is 2.12 times more volatile than Hamilton Enhanced Multi Sector. It trades about 0.02 of its total potential returns per unit of risk. Hamilton Enhanced Multi Sector is currently generating about 0.08 per unit of volatility. If you would invest  1,321  in Hamilton Enhanced Multi Sector on October 15, 2024 and sell it today you would earn a total of  429.00  from holding Hamilton Enhanced Multi Sector or generate 32.48% return on investment over 90 days.

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

CI Gold Giants  vs.  Hamilton Enhanced Multi Sector

CI Gold Giants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CI Gold Giants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, CI Gold is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Hamilton Enhanced Multi

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Enhanced Multi Sector are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Hamilton Enhanced is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CI Gold and Hamilton Enhanced

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

The idea behind CI Gold Giants and Hamilton Enhanced Multi Sector 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.