Correlation Between IShares Diversified and Hamilton Gold
Can any of the company-specific risk be diversified away by investing in both IShares Diversified 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 Diversified 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 Diversified Monthly and Hamilton Gold Producer, you can compare the effects of market volatilities on IShares Diversified 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 Diversified with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Diversified and Hamilton Gold.
Diversification Opportunities for IShares Diversified and Hamilton Gold
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Hamilton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares Diversified Monthly 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 Diversified 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 Diversified Monthly 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 Diversified i.e., IShares Diversified and Hamilton Gold go up and down completely randomly.
Pair Corralation between IShares Diversified and Hamilton Gold
Assuming the 90 days trading horizon IShares Diversified is expected to generate 6.71 times less return on investment than Hamilton Gold. But when comparing it to its historical volatility, iShares Diversified Monthly is 9.85 times less risky than Hamilton Gold. It trades about 0.22 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Diversified Monthly vs. Hamilton Gold Producer
Performance |
| Timeline |
| iShares Diversified |
| Hamilton Gold Producer |
IShares Diversified and Hamilton Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Diversified and Hamilton Gold
The main advantage of trading using opposite IShares Diversified and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Diversified 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 Diversified vs. iShares Convertible Bond | IShares Diversified vs. iShares SP Mid Cap | IShares Diversified vs. iShares Edge MSCI | IShares Diversified 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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