Correlation Between IShares Equal and Hamilton Gold
Can any of the company-specific risk be diversified away by investing in both IShares Equal and Hamilton Gold 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 IShares Equal and Hamilton Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Equal Weight and Hamilton Gold Producer, you can compare the effects of market volatilities on IShares Equal and Hamilton Gold 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 IShares Equal with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Equal and Hamilton Gold.
Diversification Opportunities for IShares Equal and Hamilton Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Hamilton is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iShares Equal Weight and Hamilton Gold Producer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Gold Producer and IShares Equal 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 iShares Equal Weight are associated (or correlated) with Hamilton Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Gold Producer has no effect on the direction of IShares Equal i.e., IShares Equal and Hamilton Gold go up and down completely randomly.
Pair Corralation between IShares Equal and Hamilton Gold
Assuming the 90 days trading horizon IShares Equal is expected to generate 1.05 times less return on investment than Hamilton Gold. But when comparing it to its historical volatility, iShares Equal Weight is 4.79 times less risky than Hamilton Gold. It trades about 0.31 of its potential returns per unit of risk. Hamilton Gold Producer is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,327 in Hamilton Gold Producer on August 28, 2025 and sell it today you would earn a total of 214.00 from holding Hamilton Gold Producer or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
iShares Equal Weight vs. Hamilton Gold Producer
Performance |
| Timeline |
| iShares Equal Weight |
| Hamilton Gold Producer |
IShares Equal and Hamilton Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Equal and Hamilton Gold
The main advantage of trading using opposite IShares Equal and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Equal position performs unexpectedly, Hamilton Gold 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 Gold will offset losses from the drop in Hamilton Gold's long position.| IShares Equal vs. iShares Convertible Bond | IShares Equal vs. iShares SP Mid Cap | IShares Equal vs. iShares Edge MSCI | IShares Equal vs. iShares Flexible Monthly |
| Hamilton Gold vs. Hamilton Equity YIELD | Hamilton Gold vs. Hamilton Enhanced Canadian | Hamilton Gold vs. Hamilton Australian Bank | Hamilton Gold vs. Hamilton MidSmall Cap Financials |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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