Correlation Between Reinsurance Group and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group 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 Reinsurance Group and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and Hamilton Insurance Group,, you can compare the effects of market volatilities on Reinsurance Group 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 Reinsurance Group with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and Hamilton Insurance.
Diversification Opportunities for Reinsurance Group and Hamilton Insurance
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Reinsurance and Hamilton is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of 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 Reinsurance Group 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 Reinsurance Group of 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 Reinsurance Group i.e., Reinsurance Group and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Reinsurance Group and Hamilton Insurance
Considering the 90-day investment horizon Reinsurance Group of is expected to generate 1.17 times more return on investment than Hamilton Insurance. However, Reinsurance Group is 1.17 times more volatile than Hamilton Insurance Group,. It trades about 0.23 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.23 per unit of risk. If you would invest 20,959 in Reinsurance Group of on August 26, 2024 and sell it today you would earn a total of 2,111 from holding Reinsurance Group of or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reinsurance Group of vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Reinsurance Group |
| Hamilton Insurance Group, |
Reinsurance Group and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and Hamilton Insurance
The main advantage of trading using opposite Reinsurance Group and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group 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.| Reinsurance Group vs. Maiden Holdings | Reinsurance Group vs. Greenlight Capital Re | Reinsurance Group vs. RenaissanceRe Holdings | Reinsurance Group vs. Renaissancere Holdings |
| Hamilton Insurance vs. Brookfield Wealth Solutions | Hamilton Insurance vs. Reinsurance Group of | Hamilton Insurance vs. Renaissancere Holdings | Hamilton Insurance vs. Greenlight Capital Re |
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 CEOs Directory module to screen CEOs from public companies around the world.
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