Correlation Between Hamilton Insurance and Medallion Financial
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Medallion Financial 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 Medallion Financial 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 Medallion Financial Corp, you can compare the effects of market volatilities on Hamilton Insurance and Medallion Financial 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 Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Medallion Financial.
Diversification Opportunities for Hamilton Insurance and Medallion Financial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hamilton and Medallion is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial 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 Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Medallion Financial go up and down completely randomly.
Pair Corralation between Hamilton Insurance and Medallion Financial
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 0.94 times more return on investment than Medallion Financial. However, Hamilton Insurance Group, is 1.06 times less risky than Medallion Financial. It trades about 0.23 of its potential returns per unit of risk. Medallion Financial Corp is currently generating about 0.11 per unit of risk. If you would invest 1,769 in Hamilton Insurance Group, on August 27, 2024 and sell it today you would earn a total of 147.00 from holding Hamilton Insurance Group, or generate 8.31% 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. Medallion Financial Corp
Performance |
| Timeline |
| Hamilton Insurance Group, |
| Medallion Financial Corp |
Hamilton Insurance and Medallion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and Medallion Financial
The main advantage of trading using opposite Hamilton Insurance and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Medallion Financial 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 Medallion Financial will offset losses from the drop in Medallion Financial's long position.| Hamilton Insurance vs. 51Talk Online Education | Hamilton Insurance vs. Inuvo Inc | Hamilton Insurance vs. Fortress Transp Infra | Hamilton Insurance vs. U Haul Holding |
| Medallion Financial vs. Midland States Bancorp | Medallion Financial vs. Western New England | Medallion Financial vs. Merchants Bancorp | Medallion Financial vs. MidWestOne Financial Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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