Correlation Between First Asset and Hamilton Enhanced
Can any of the company-specific risk be diversified away by investing in both First Asset and Hamilton Enhanced 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 First Asset and Hamilton Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Asset Morningstar and Hamilton Enhanced Canadian, you can compare the effects of market volatilities on First Asset and Hamilton Enhanced 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 First Asset with a short position of Hamilton Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Asset and Hamilton Enhanced.
Diversification Opportunities for First Asset and Hamilton Enhanced
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Hamilton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Morningstar and Hamilton Enhanced Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced and First Asset 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 First Asset Morningstar are associated (or correlated) with Hamilton Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Enhanced has no effect on the direction of First Asset i.e., First Asset and Hamilton Enhanced go up and down completely randomly.
Pair Corralation between First Asset and Hamilton Enhanced
Assuming the 90 days trading horizon First Asset Morningstar is expected to generate 0.96 times more return on investment than Hamilton Enhanced. However, First Asset Morningstar is 1.04 times less risky than Hamilton Enhanced. It trades about 0.2 of its potential returns per unit of risk. Hamilton Enhanced Canadian is currently generating about 0.14 per unit of risk. If you would invest 4,310 in First Asset Morningstar on December 6, 2025 and sell it today you would earn a total of 545.00 from holding First Asset Morningstar or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Asset Morningstar vs. Hamilton Enhanced Canadian
Performance |
| Timeline |
| First Asset Morningstar |
| Hamilton Enhanced |
First Asset and Hamilton Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Asset and Hamilton Enhanced
The main advantage of trading using opposite First Asset and Hamilton Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Asset position performs unexpectedly, Hamilton Enhanced 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 Enhanced will offset losses from the drop in Hamilton Enhanced's long position.| First Asset vs. CI Canada Quality | First Asset vs. Hamilton Enhanced Canadian | First Asset vs. First Asset Tech | First Asset vs. Evolve Canadian Banks |
| Hamilton Enhanced vs. iShares MSCI Emerging | Hamilton Enhanced vs. Desjardins RI Canada | Hamilton Enhanced vs. Hamilton Enhanced Canadian | Hamilton Enhanced vs. iShares Global Agriculture |
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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