Correlation Between Invesco 1 and Hamilton Gold

Can any of the company-specific risk be diversified away by investing in both Invesco 1 and Hamilton Gold 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 Invesco 1 and Hamilton Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Invesco 1 3 Year and Hamilton Gold Producer, you can compare the effects of market volatilities on Invesco 1 and Hamilton Gold 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 Invesco 1 with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco 1 and Hamilton Gold.

Diversification Opportunities for Invesco 1 and Hamilton Gold

0.74

Correlation Coefficient

Invesco 1  Hamilton Gold

Poor diversification

The 3 months correlation between Invesco and Hamilton is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Invesco 1 3 Year and Hamilton Gold Producer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Gold Producer and Invesco 1 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 Invesco 1 3 Year are associated (or correlated) with Hamilton Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Gold Producer has no effect on the direction of Invesco 1 i.e., Invesco 1 and Hamilton Gold go up and down completely randomly.

Pair Corralation between Invesco 1 and Hamilton Gold

Assuming the 90 days trading horizon Invesco 1 is expected to generate 26.17 times less return on investment than Hamilton Gold. But when comparing it to its historical volatility, Invesco 1 3 Year is 49.33 times less risky than Hamilton Gold. It trades about 0.22 of its potential returns per unit of risk. Hamilton Gold Producer is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,268  in Hamilton Gold Producer on October 10, 2025 and sell it today you would earn a total of  554.00  from holding Hamilton Gold Producer or generate 16.95% return on investment over 90 days.

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

Invesco 1 3 Year  vs.  Hamilton Gold Producer

Invesco 1 3

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco 1 3 Year are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, Invesco 1 is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Hamilton Gold Producer

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Gold Producer are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hamilton Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Invesco 1 and Hamilton Gold

The main advantage of trading using opposite Invesco 1 and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco 1 position performs unexpectedly, Hamilton Gold 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 Gold will offset losses from the drop in Hamilton Gold's long position.

The idea behind Invesco 1 3 Year and Hamilton Gold Producer 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.