Correlation Between CI Munro and Hamilton Enhanced

Can any of the company-specific risk be diversified away by investing in both CI Munro and Hamilton Enhanced 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 Munro and Hamilton Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CI Munro Alternative and Hamilton Enhanced Multi Sector, you can compare the effects of market volatilities on CI Munro and Hamilton Enhanced 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 Munro with a short position of Hamilton Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Munro and Hamilton Enhanced.

Diversification Opportunities for CI Munro and Hamilton Enhanced

0.99

Correlation Coefficient

CI Munro  Hamilton Enhanced

No risk reduction

The 3 months correlation between CMAG and Hamilton is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding CI Munro Alternative and Hamilton Enhanced Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Enhanced Multi and CI Munro 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 Munro Alternative are associated (or correlated) with Hamilton Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Enhanced Multi has no effect on the direction of CI Munro i.e., CI Munro and Hamilton Enhanced go up and down completely randomly.

Pair Corralation between CI Munro and Hamilton Enhanced

Assuming the 90 days trading horizon CI Munro Alternative is expected to generate 1.83 times more return on investment than Hamilton Enhanced. However, CI Munro is 1.83 times more volatile than Hamilton Enhanced Multi Sector. It trades about 0.4 of its potential returns per unit of risk. Hamilton Enhanced Multi Sector is currently generating about 0.54 per unit of risk. If you would invest  3,308  in CI Munro Alternative on April 20, 2025 and sell it today you would earn a total of  751.00  from holding CI Munro Alternative or generate 22.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

CI Munro Alternative  vs.  Hamilton Enhanced Multi Sector

CI Munro Alternative

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CI Munro Alternative are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Munro displayed solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Enhanced Multi

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Enhanced Multi Sector are ranked lower than 42 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Enhanced displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CI Munro and Hamilton Enhanced

The main advantage of trading using opposite CI Munro and Hamilton Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Munro position performs unexpectedly, Hamilton Enhanced 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 Enhanced will offset losses from the drop in Hamilton Enhanced's long position.

The idea behind CI Munro Alternative and Hamilton Enhanced Multi Sector pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.