Correlation Between Hamilton Insurance and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Eagle Point 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 Eagle Point 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 Eagle Point Credit, you can compare the effects of market volatilities on Hamilton Insurance and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Eagle Point.
Diversification Opportunities for Hamilton Insurance and Eagle Point
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hamilton and Eagle is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Eagle Point go up and down completely randomly.
Pair Corralation between Hamilton Insurance and Eagle Point
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 6.55 times more return on investment than Eagle Point. However, Hamilton Insurance is 6.55 times more volatile than Eagle Point Credit. It trades about 0.05 of its potential returns per unit of risk. Eagle Point Credit is currently generating about 0.12 per unit of risk. If you would invest 1,500 in Hamilton Insurance Group, on August 28, 2024 and sell it today you would earn a total of 416.00 from holding Hamilton Insurance Group, or generate 27.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.58% |
| Values | Daily Returns |
Hamilton Insurance Group, vs. Eagle Point Credit
Performance |
| Timeline |
| Hamilton Insurance Group, |
| Eagle Point Credit |
Hamilton Insurance and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and Eagle Point
The main advantage of trading using opposite Hamilton Insurance and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Hamilton Insurance vs. Brookfield Wealth Solutions | Hamilton Insurance vs. Reinsurance Group of | Hamilton Insurance vs. Renaissancere Holdings | Hamilton Insurance vs. Greenlight Capital Re |
| Eagle Point vs. Hf Foods Group | Eagle Point vs. Tyson Foods | Eagle Point vs. Where Food Comes | Eagle Point vs. SL Green Realty |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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