Correlation Between Hamilton Enhanced and RBC Quant

Can any of the company-specific risk be diversified away by investing in both Hamilton Enhanced 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 Enhanced 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 Enhanced Canadian and RBC Quant Emerging, you can compare the effects of market volatilities on Hamilton Enhanced 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 Enhanced with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Enhanced and RBC Quant.

Diversification Opportunities for Hamilton Enhanced and RBC Quant

0.52

Correlation Coefficient

Hamilton Enhanced  RBC Quant

Very weak diversification

The 3 months correlation between Hamilton and RBC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Enhanced Canadian and RBC Quant Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant Emerging 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 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 Emerging has no effect on the direction of Hamilton Enhanced i.e., Hamilton Enhanced and RBC Quant go up and down completely randomly.

Pair Corralation between Hamilton Enhanced and RBC Quant

Assuming the 90 days trading horizon Hamilton Enhanced Canadian is expected to generate 0.58 times more return on investment than RBC Quant. However, Hamilton Enhanced Canadian is 1.71 times less risky than RBC Quant. It trades about 0.71 of its potential returns per unit of risk. RBC Quant Emerging is currently generating about 0.22 per unit of risk. If you would invest  2,278  in Hamilton Enhanced Canadian on April 23, 2025 and sell it today you would earn a total of  530.00  from holding Hamilton Enhanced Canadian or generate 23.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hamilton Enhanced Canadian  vs.  RBC Quant Emerging

Hamilton Enhanced

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Enhanced Canadian are ranked lower than 56 (%) 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.

RBC Quant Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Quant Emerging are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, RBC Quant may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hamilton Enhanced and RBC Quant

The main advantage of trading using opposite Hamilton Enhanced and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Enhanced 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.

The idea behind Hamilton Enhanced Canadian and RBC Quant Emerging 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.