Correlation Between Hamilton Enhanced and Vanguard Dividend
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and Vanguard Dividend 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 Vanguard Dividend 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 Vanguard Dividend Appreciation, you can compare the effects of market volatilities on Hamilton Enhanced and Vanguard Dividend 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 Vanguard Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and Vanguard Dividend.
Diversification Opportunities for Hamilton Enhanced and Vanguard Dividend
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hamilton and Vanguard is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Multi Sector and Vanguard Dividend Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Dividend 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 Vanguard Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Dividend has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and Vanguard Dividend go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and Vanguard Dividend
Assuming the 90 days trading horizon Hamilton Enhanced Multi Sector is expected to generate 1.08 times more return on investment than Vanguard Dividend. However, Hamilton Enhanced is 1.08 times more volatile than Vanguard Dividend Appreciation. It trades about 0.13 of its potential returns per unit of risk. Vanguard Dividend Appreciation is currently generating about 0.07 per unit of risk. If you would invest 1,243 in Hamilton Enhanced Multi Sector on October 9, 2025 and sell it today you would earn a total of 881.00 from holding Hamilton Enhanced Multi Sector or generate 70.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Multi Sector vs. Vanguard Dividend Appreciation
Performance |
| Timeline |
| Hamilton Enhanced Multi |
| Vanguard Dividend |
Hamilton Enhanced and Vanguard Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and Vanguard Dividend
The main advantage of trading using opposite Hamilton Enhanced and Vanguard Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, Vanguard Dividend 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 Vanguard Dividend will offset losses from the drop in Vanguard Dividend's long position.| Hamilton Enhanced vs. Vanguard FTSE Developed | Hamilton Enhanced vs. Wealthsimple Developed Markets | Hamilton Enhanced vs. Wealthsimple North America | Hamilton Enhanced vs. iShares SPTSX Canadian |
| Vanguard Dividend vs. Vanguard FTSE Developed | Vanguard Dividend vs. Hamilton Utilities YIELD | Vanguard Dividend vs. Mackenzie Large Cap | Vanguard Dividend vs. Wealthsimple North America |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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