Correlation Between Hamilton T and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Hamilton T and RBC Quant 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 T and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton T Bill YIELD and RBC Quant Canadian, you can compare the effects of market volatilities on Hamilton T and RBC Quant 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 T with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton T and RBC Quant.
Diversification Opportunities for Hamilton T and RBC Quant
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hamilton and RBC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton T Bill YIELD and RBC Quant Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Canadian and Hamilton T 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 T Bill YIELD are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant Canadian has no effect on the direction of Hamilton T i.e., Hamilton T and RBC Quant go up and down completely randomly.
Pair Corralation between Hamilton T and RBC Quant
Assuming the 90 days trading horizon Hamilton T Bill YIELD is not expected to generate positive returns. However, Hamilton T Bill YIELD is 5.04 times less risky than RBC Quant. It waists most of its returns potential to compensate for thr risk taken. RBC Quant is generating about 0.34 per unit of risk. If you would invest 3,667 in RBC Quant Canadian on October 6, 2025 and sell it today you would earn a total of 97.00 from holding RBC Quant Canadian or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton T Bill YIELD vs. RBC Quant Canadian
Performance |
| Timeline |
| Hamilton T Bill |
| RBC Quant Canadian |
Hamilton T and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton T and RBC Quant
The main advantage of trading using opposite Hamilton T and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton T position performs unexpectedly, RBC Quant 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 Quant will offset losses from the drop in RBC Quant's long position.| Hamilton T vs. Dynamic Active Ultra | Hamilton T vs. Hamilton Bond YIELD | Hamilton T vs. Global X Equal | Hamilton T vs. iShares ESG Advanced |
| RBC Quant vs. RBC Quant Dividend | RBC Quant vs. RBC Quant Dividend | RBC Quant vs. Fidelity Canadian High | RBC Quant vs. iShares MSCI Europe |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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