Correlation Between Hamilton Insurance and Capital One
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Capital One 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 Insurance and Capital One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Insurance Group, and Capital One Financial, you can compare the effects of market volatilities on Hamilton Insurance and Capital One 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 Insurance with a short position of Capital One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Capital One.
Diversification Opportunities for Hamilton Insurance and Capital One
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hamilton and Capital is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Capital One Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital One Financial and Hamilton Insurance 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 Insurance Group, are associated (or correlated) with Capital One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital One Financial has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Capital One go up and down completely randomly.
Pair Corralation between Hamilton Insurance and Capital One
Allowing for the 90-day total investment horizon Hamilton Insurance is expected to generate 2.41 times less return on investment than Capital One. In addition to that, Hamilton Insurance is 1.14 times more volatile than Capital One Financial. It trades about 0.04 of its total potential returns per unit of risk. Capital One Financial is currently generating about 0.12 per unit of volatility. If you would invest 10,682 in Capital One Financial on August 24, 2024 and sell it today you would earn a total of 7,582 from holding Capital One Financial or generate 70.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Insurance Group, vs. Capital One Financial
Performance |
| Timeline |
| Hamilton Insurance Group, |
| Capital One Financial |
Hamilton Insurance and Capital One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and Capital One
The main advantage of trading using opposite Hamilton Insurance and Capital One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Capital One 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 Capital One will offset losses from the drop in Capital One's long position.| Hamilton Insurance vs. Lion One Metals | Hamilton Insurance vs. NioCorp Developments Ltd | Hamilton Insurance vs. Barrick Gold Corp | Hamilton Insurance vs. Welsbach Technology Metals |
| Capital One vs. Mastercard | Capital One vs. Visa Class A | Capital One vs. PayPal Holdings | Capital One vs. Ally Financial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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