Correlation Between Hamilton Enhanced and CI ONE
Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced and CI ONE 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 Enhanced and CI ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Enhanced Canadian and CI ONE Global, you can compare the effects of market volatilities on Hamilton Enhanced and CI ONE 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 Enhanced with a short position of CI ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and CI ONE.
Diversification Opportunities for Hamilton Enhanced and CI ONE
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and ONEQ is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Canadian and CI ONE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE Global and Hamilton Enhanced 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 Enhanced Canadian are associated (or correlated) with CI ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE Global has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and CI ONE go up and down completely randomly.
Pair Corralation between Hamilton Enhanced and CI ONE
Assuming the 90 days trading horizon Hamilton Enhanced Canadian is expected to generate 1.45 times more return on investment than CI ONE. However, Hamilton Enhanced is 1.45 times more volatile than CI ONE Global. It trades about 0.08 of its potential returns per unit of risk. CI ONE Global is currently generating about 0.11 per unit of risk. If you would invest 1,767 in Hamilton Enhanced Canadian on September 3, 2024 and sell it today you would earn a total of 774.00 from holding Hamilton Enhanced Canadian or generate 43.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Enhanced Canadian vs. CI ONE Global
Performance |
| Timeline |
| Hamilton Enhanced |
| CI ONE Global |
Hamilton Enhanced and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Enhanced and CI ONE
The main advantage of trading using opposite Hamilton Enhanced and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced position performs unexpectedly, CI ONE 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 CI ONE will offset losses from the drop in CI ONE's long position.| Hamilton Enhanced vs. Hamilton Enhanced Multi Sector | Hamilton Enhanced vs. Hamilton Enhanced Covered | Hamilton Enhanced vs. Hamilton Canadian Financials | Hamilton Enhanced vs. Harvest Diversified Monthly |
| CI ONE vs. CI MidCap Dividend | CI ONE vs. CI Yield Enhanced | CI ONE vs. CI Canadian Short Term | CI ONE vs. CI ONE North |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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