Correlation Between IShares MSCI and Hamilton Gold
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 MSCI 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 MSCI Min and Hamilton Gold Producer, you can compare the effects of market volatilities on IShares MSCI 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 MSCI with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Hamilton Gold.
Diversification Opportunities for IShares MSCI and Hamilton Gold
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Hamilton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Min 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 MSCI 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 MSCI Min 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 MSCI i.e., IShares MSCI and Hamilton Gold go up and down completely randomly.
Pair Corralation between IShares MSCI and Hamilton Gold
Assuming the 90 days trading horizon IShares MSCI is expected to generate 6.34 times less return on investment than Hamilton Gold. But when comparing it to its historical volatility, iShares MSCI Min is 4.12 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 2,764 in Hamilton Gold Producer on August 28, 2025 and sell it today you would earn a total of 642.00 from holding Hamilton Gold Producer or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Min vs. Hamilton Gold Producer
Performance |
| Timeline |
| iShares MSCI Min |
| Hamilton Gold Producer |
IShares MSCI and Hamilton Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Hamilton Gold
The main advantage of trading using opposite IShares MSCI and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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 MSCI vs. iShares Convertible Bond | IShares MSCI vs. iShares SP Mid Cap | IShares MSCI vs. iShares Edge MSCI | IShares MSCI 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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