Correlation Between Hamilton Australian and RBC 1
Can any of the company-specific risk be diversified away by investing in both Hamilton Australian and RBC 1 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 Hamilton Australian and RBC 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Australian Bank and RBC 1 5 Year, you can compare the effects of market volatilities on Hamilton Australian and RBC 1 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 Hamilton Australian with a short position of RBC 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Australian and RBC 1.
Diversification Opportunities for Hamilton Australian and RBC 1
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hamilton and RBC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Australian Bank and RBC 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC 1 5 and Hamilton Australian 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 Hamilton Australian Bank are associated (or correlated) with RBC 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC 1 5 has no effect on the direction of Hamilton Australian i.e., Hamilton Australian and RBC 1 go up and down completely randomly.
Pair Corralation between Hamilton Australian and RBC 1
Assuming the 90 days trading horizon Hamilton Australian Bank is expected to generate 8.21 times more return on investment than RBC 1. However, Hamilton Australian is 8.21 times more volatile than RBC 1 5 Year. It trades about 0.09 of its potential returns per unit of risk. RBC 1 5 Year is currently generating about 0.31 per unit of risk. If you would invest 2,997 in Hamilton Australian Bank on October 20, 2025 and sell it today you would earn a total of 43.00 from holding Hamilton Australian Bank or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Australian Bank vs. RBC 1 5 Year
Performance |
| Timeline |
| Hamilton Australian Bank |
| RBC 1 5 |
Hamilton Australian and RBC 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Australian and RBC 1
The main advantage of trading using opposite Hamilton Australian and RBC 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Australian position performs unexpectedly, RBC 1 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 RBC 1 will offset losses from the drop in RBC 1's long position.| Hamilton Australian vs. TD Q Canadian | Hamilton Australian vs. iShares SP Small Cap | Hamilton Australian vs. Brompton Flaherty Crumrine | Hamilton Australian vs. RBC Quant EAFE |
| RBC 1 vs. Global X Laddered | RBC 1 vs. Global X 7 10 | RBC 1 vs. TD Long Term | RBC 1 vs. Brompton Global Dividend |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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