Correlation Between Stifel Financial and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Stifel Financial 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 Stifel Financial and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Hamilton Insurance Group,, you can compare the effects of market volatilities on Stifel Financial 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 Stifel Financial with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Hamilton Insurance.
Diversification Opportunities for Stifel Financial and Hamilton Insurance
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stifel and Hamilton is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial 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 Stifel Financial 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 Stifel Financial 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 Stifel Financial i.e., Stifel Financial and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Stifel Financial and Hamilton Insurance
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.8 times more return on investment than Hamilton Insurance. However, Stifel Financial is 1.24 times less risky than Hamilton Insurance. It trades about 0.09 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.05 per unit of risk. If you would invest 5,753 in Stifel Financial on August 30, 2024 and sell it today you would earn a total of 5,875 from holding Stifel Financial or generate 102.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.54% |
| Values | Daily Returns |
Stifel Financial vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Stifel Financial |
| Hamilton Insurance Group, |
Stifel Financial and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Hamilton Insurance
The main advantage of trading using opposite Stifel Financial and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial 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.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| Hamilton Insurance vs. Lucid Group | Hamilton Insurance vs. Visteon Corp | Hamilton Insurance vs. HF Sinclair Corp | Hamilton Insurance vs. AerSale 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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