Correlation Between Hamilton Insurance and SiriusPoint
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and SiriusPoint 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 SiriusPoint 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 SiriusPoint, you can compare the effects of market volatilities on Hamilton Insurance and SiriusPoint 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 SiriusPoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and SiriusPoint.
Diversification Opportunities for Hamilton Insurance and SiriusPoint
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hamilton and SiriusPoint is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint 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 SiriusPoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiriusPoint has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and SiriusPoint go up and down completely randomly.
Pair Corralation between Hamilton Insurance and SiriusPoint
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 4.86 times more return on investment than SiriusPoint. However, Hamilton Insurance is 4.86 times more volatile than SiriusPoint. It trades about 0.09 of its potential returns per unit of risk. SiriusPoint is currently generating about 0.15 per unit of risk. If you would invest 1,798 in Hamilton Insurance Group, on August 23, 2024 and sell it today you would earn a total of 57.00 from holding Hamilton Insurance Group, or generate 3.17% 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. SiriusPoint
Performance |
| Timeline |
| Hamilton Insurance Group, |
| SiriusPoint |
Hamilton Insurance and SiriusPoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and SiriusPoint
The main advantage of trading using opposite Hamilton Insurance and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, SiriusPoint 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 SiriusPoint will offset losses from the drop in SiriusPoint'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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