Correlation Between CI Global and Hamilton Global
Can any of the company-specific risk be diversified away by investing in both CI Global and Hamilton Global 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 CI Global and Hamilton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Global Financial and Hamilton Global Financials, you can compare the effects of market volatilities on CI Global and Hamilton Global 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 CI Global with a short position of Hamilton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Global and Hamilton Global.
Diversification Opportunities for CI Global and Hamilton Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FSF and Hamilton is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CI Global Financial and Hamilton Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Global Fina and CI Global 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 CI Global Financial are associated (or correlated) with Hamilton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Global Fina has no effect on the direction of CI Global i.e., CI Global and Hamilton Global go up and down completely randomly.
Pair Corralation between CI Global and Hamilton Global
Assuming the 90 days trading horizon CI Global Financial is expected to generate 1.07 times more return on investment than Hamilton Global. However, CI Global is 1.07 times more volatile than Hamilton Global Financials. It trades about 0.26 of its potential returns per unit of risk. Hamilton Global Financials is currently generating about 0.26 per unit of risk. If you would invest 2,738 in CI Global Financial on September 12, 2024 and sell it today you would earn a total of 345.00 from holding CI Global Financial or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Global Financial vs. Hamilton Global Financials
Performance |
| Timeline |
| CI Global Financial |
| Hamilton Global Fina |
CI Global and Hamilton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Global and Hamilton Global
The main advantage of trading using opposite CI Global and Hamilton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Global position performs unexpectedly, Hamilton Global 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 Global will offset losses from the drop in Hamilton Global's long position.| CI Global vs. CI Preferred Share | CI Global vs. First Asset Morningstar | CI Global vs. CI Short Term | CI Global vs. CI Investment Grade |
| Hamilton Global vs. Hamilton Canadian Bank | Hamilton Global vs. Hamilton Australian Bank | Hamilton Global vs. Hamilton Enhanced Canadian | Hamilton Global 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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