Correlation Between Lucid and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Lucid and Hamilton Insurance 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 Lucid and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucid Group and Hamilton Insurance Group,, you can compare the effects of market volatilities on Lucid and Hamilton Insurance 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 Lucid with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid and Hamilton Insurance.
Diversification Opportunities for Lucid and Hamilton Insurance
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lucid and Hamilton is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and Hamilton Insurance Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Insurance Group, and Lucid 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 Lucid Group are associated (or correlated) with Hamilton Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Insurance Group, has no effect on the direction of Lucid i.e., Lucid and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Lucid and Hamilton Insurance
Given the investment horizon of 90 days Lucid Group is expected to under-perform the Hamilton Insurance. In addition to that, Lucid is 2.3 times more volatile than Hamilton Insurance Group,. It trades about -0.02 of its total potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.03 per unit of volatility. If you would invest 1,500 in Hamilton Insurance Group, on January 10, 2025 and sell it today you would earn a total of 300.00 from holding Hamilton Insurance Group, or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.66% |
| Values | Daily Returns |
Lucid Group vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Lucid Group |
| Hamilton Insurance Group, |
Lucid and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucid and Hamilton Insurance
The main advantage of trading using opposite Lucid and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucid position performs unexpectedly, Hamilton Insurance 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 Hamilton Insurance will offset losses from the drop in Hamilton Insurance's long position.The idea behind Lucid Group and Hamilton Insurance Group, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hamilton Insurance vs. Bowhead Specialty Holdings | Hamilton Insurance vs. Goosehead Insurance | Hamilton Insurance vs. Siriuspoint | Hamilton Insurance vs. Chubb |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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