Correlation Between Hamilton Canadian and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Hamilton Canadian and IShares 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 Hamilton Canadian and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Canadian Financials and iShares Canadian Select, you can compare the effects of market volatilities on Hamilton Canadian and IShares 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 Hamilton Canadian with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Canadian and IShares Canadian.
Diversification Opportunities for Hamilton Canadian and IShares Canadian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hamilton and IShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Canadian Financials and iShares Canadian Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian Select and Hamilton Canadian 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 Canadian Financials are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian Select has no effect on the direction of Hamilton Canadian i.e., Hamilton Canadian and IShares Canadian go up and down completely randomly.
Pair Corralation between Hamilton Canadian and IShares Canadian
Assuming the 90 days trading horizon Hamilton Canadian is expected to generate 1.02 times less return on investment than IShares Canadian. In addition to that, Hamilton Canadian is 1.17 times more volatile than iShares Canadian Select. It trades about 0.29 of its total potential returns per unit of risk. iShares Canadian Select is currently generating about 0.35 per unit of volatility. If you would invest 3,501 in iShares Canadian Select on August 28, 2025 and sell it today you would earn a total of 317.00 from holding iShares Canadian Select or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Canadian Financials vs. iShares Canadian Select
Performance |
| Timeline |
| Hamilton Canadian |
| iShares Canadian Select |
Hamilton Canadian and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Canadian and IShares Canadian
The main advantage of trading using opposite Hamilton Canadian and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Canadian position performs unexpectedly, IShares 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| Hamilton Canadian vs. Hamilton Equity YIELD | Hamilton Canadian vs. Hamilton Enhanced Canadian | Hamilton Canadian vs. Hamilton Australian Bank | Hamilton Canadian vs. Hamilton MidSmall Cap Financials |
| IShares Canadian vs. iShares Convertible Bond | IShares Canadian vs. iShares SP Mid Cap | IShares Canadian vs. iShares Edge MSCI | IShares Canadian vs. iShares Flexible Monthly |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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