Correlation Between Global X and Hamilton Gold
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Hamilton Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SP and Hamilton Gold Producer, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Hamilton Gold.
Diversification Opportunities for Global X and Hamilton Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Hamilton is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Global X SP 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 Global X 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 Global X SP 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 Global X i.e., Global X and Hamilton Gold go up and down completely randomly.
Pair Corralation between Global X and Hamilton Gold
Assuming the 90 days trading horizon Global X is expected to generate 5.07 times less return on investment than Hamilton Gold. But when comparing it to its historical volatility, Global X SP is 3.38 times less risky than Hamilton Gold. It trades about 0.1 of its potential returns per unit of risk. Hamilton Gold Producer is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,689 in Hamilton Gold Producer on August 18, 2025 and sell it today you would earn a total of 617.00 from holding Hamilton Gold Producer or generate 22.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X SP vs. Hamilton Gold Producer
Performance |
| Timeline |
| Global X SP |
| Hamilton Gold Producer |
Global X and Hamilton Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Hamilton Gold
The main advantage of trading using opposite Global X and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. iShares MSCI Canada | Global X vs. Hamilton Gold Producer | Global X vs. AGFiQ Market Neutral | Global X vs. RBC Canadian Bank |
| Hamilton Gold vs. Hamilton Energy YIELD | Hamilton Gold vs. iShares MSCI Canada | Hamilton Gold vs. Global X SP | Hamilton Gold vs. AGFiQ Market Neutral |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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