Correlation Between Hamilton Insurance and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and IX Acquisition 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 IX Acquisition 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 IX Acquisition Corp, you can compare the effects of market volatilities on Hamilton Insurance and IX Acquisition 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and IX Acquisition.
Diversification Opportunities for Hamilton Insurance and IX Acquisition
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hamilton and IXAQ is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and IX Acquisition go up and down completely randomly.
Pair Corralation between Hamilton Insurance and IX Acquisition
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 5.08 times more return on investment than IX Acquisition. However, Hamilton Insurance is 5.08 times more volatile than IX Acquisition Corp. It trades about 0.07 of its potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.05 per unit of risk. If you would invest 1,450 in Hamilton Insurance Group, on September 1, 2024 and sell it today you would earn a total of 458.00 from holding Hamilton Insurance Group, or generate 31.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Insurance Group, vs. IX Acquisition Corp
Performance |
| Timeline |
| Hamilton Insurance Group, |
| IX Acquisition Corp |
Hamilton Insurance and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and IX Acquisition
The main advantage of trading using opposite Hamilton Insurance and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Hamilton Insurance vs. Vera Bradley | Hamilton Insurance vs. Weyco Group | Hamilton Insurance vs. Mativ Holdings | Hamilton Insurance vs. Acco Brands |
| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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