Correlation Between Hamilton Australian and Hamilton Canadian

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hamilton Australian and Hamilton Canadian 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 Hamilton Canadian 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 Hamilton Canadian Bank, you can compare the effects of market volatilities on Hamilton Australian and Hamilton Canadian 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 Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Australian and Hamilton Canadian.

Diversification Opportunities for Hamilton Australian and Hamilton Canadian

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Hamilton and Hamilton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Australian Bank and Hamilton Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian Bank 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 Hamilton Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian Bank has no effect on the direction of Hamilton Australian i.e., Hamilton Australian and Hamilton Canadian go up and down completely randomly.

Pair Corralation between Hamilton Australian and Hamilton Canadian

Assuming the 90 days trading horizon Hamilton Australian is expected to generate 1.63 times less return on investment than Hamilton Canadian. In addition to that, Hamilton Australian is 2.23 times more volatile than Hamilton Canadian Bank. It trades about 0.15 of its total potential returns per unit of risk. Hamilton Canadian Bank is currently generating about 0.53 per unit of volatility. If you would invest  2,279  in Hamilton Canadian Bank on April 23, 2025 and sell it today you would earn a total of  397.00  from holding Hamilton Canadian Bank or generate 17.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Hamilton Australian Bank  vs.  Hamilton Canadian Bank

 Performance 
       Timeline  
Hamilton Australian Bank 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Australian Bank are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Australian may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Hamilton Canadian Bank 

Risk-Adjusted Performance

Excellent

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Canadian Bank are ranked lower than 41 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Canadian displayed solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Australian and Hamilton Canadian Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hamilton Australian and Hamilton Canadian

The main advantage of trading using opposite Hamilton Australian and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Australian position performs unexpectedly, Hamilton Canadian 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 Canadian will offset losses from the drop in Hamilton Canadian's long position.
The idea behind Hamilton Australian Bank and Hamilton Canadian Bank 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.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments