Correlation Between CI Gold and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both CI Gold and Hamilton Canadian 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 Canadian 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 Canadian Financials, you can compare the effects of market volatilities on CI Gold and Hamilton Canadian 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 Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and Hamilton Canadian.
Diversification Opportunities for CI Gold and Hamilton Canadian
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CGXF and Hamilton is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and Hamilton Canadian Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian 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 Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian has no effect on the direction of CI Gold i.e., CI Gold and Hamilton Canadian go up and down completely randomly.
Pair Corralation between CI Gold and Hamilton Canadian
Assuming the 90 days trading horizon CI Gold Giants is expected to generate 2.15 times more return on investment than Hamilton Canadian. However, CI Gold is 2.15 times more volatile than Hamilton Canadian Financials. It trades about 0.05 of its potential returns per unit of risk. Hamilton Canadian Financials is currently generating about -0.07 per unit of risk. If you would invest 1,170 in CI Gold Giants on December 2, 2024 and sell it today you would earn a total of 15.00 from holding CI Gold Giants or generate 1.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CI Gold Giants vs. Hamilton Canadian Financials
Performance |
Timeline |
CI Gold Giants |
Hamilton Canadian |
CI Gold and Hamilton Canadian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CI Gold and Hamilton Canadian
The main advantage of trading using opposite CI Gold and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold position performs unexpectedly, Hamilton Canadian 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 Canadian will offset losses from the drop in Hamilton Canadian's long position.CI Gold vs. First Asset Energy | CI Gold vs. First Asset Tech | CI Gold vs. Harvest Equal Weight | CI Gold vs. CI Canada Lifeco |
Hamilton Canadian vs. Hamilton Enhanced Covered | Hamilton Canadian vs. Hamilton Enhanced Multi Sector | Hamilton Canadian vs. Harvest Diversified Monthly | Hamilton Canadian vs. Brompton Enhanced Multi Asset |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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