Correlation Between Hamilton Mid and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Hamilton Mid 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 Mid 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 Mid Cap Financials and RBC Quant European, you can compare the effects of market volatilities on Hamilton Mid 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 Mid with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Mid and RBC Quant.
Diversification Opportunities for Hamilton Mid and RBC Quant
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and RBC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Mid Cap Financials and RBC Quant European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant European and Hamilton Mid 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 Mid Cap Financials 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 European has no effect on the direction of Hamilton Mid i.e., Hamilton Mid and RBC Quant go up and down completely randomly.
Pair Corralation between Hamilton Mid and RBC Quant
Assuming the 90 days trading horizon Hamilton Mid is expected to generate 1.78 times less return on investment than RBC Quant. In addition to that, Hamilton Mid is 1.57 times more volatile than RBC Quant European. It trades about 0.1 of its total potential returns per unit of risk. RBC Quant European is currently generating about 0.28 per unit of volatility. If you would invest 3,240 in RBC Quant European on November 5, 2025 and sell it today you would earn a total of 393.00 from holding RBC Quant European or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Mid Cap Financials vs. RBC Quant European
Performance |
| Timeline |
| Hamilton Mid Cap |
| RBC Quant European |
Hamilton Mid and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Mid and RBC Quant
The main advantage of trading using opposite Hamilton Mid and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Mid 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 Mid vs. Dynamic Active Mid Cap | Hamilton Mid vs. RBC Quant European | Hamilton Mid vs. Global X Big | Hamilton Mid vs. Global X Conservative |
| RBC Quant vs. Brompton European Dividend | RBC Quant vs. Mackenzie International Equity | RBC Quant vs. RBC Quant European | RBC Quant vs. iShares MSCI Min |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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