Correlation Between Siriuspoint and Hawkins
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Hawkins 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 Siriuspoint and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Hawkins, you can compare the effects of market volatilities on Siriuspoint and Hawkins 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 Siriuspoint with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Hawkins.
Diversification Opportunities for Siriuspoint and Hawkins
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siriuspoint and Hawkins is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Siriuspoint 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 Siriuspoint are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Siriuspoint i.e., Siriuspoint and Hawkins go up and down completely randomly.
Pair Corralation between Siriuspoint and Hawkins
Given the investment horizon of 90 days Siriuspoint is expected to generate 1.01 times less return on investment than Hawkins. But when comparing it to its historical volatility, Siriuspoint is 1.24 times less risky than Hawkins. It trades about 0.24 of its potential returns per unit of risk. Hawkins is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,699 in Hawkins on August 30, 2024 and sell it today you would earn a total of 1,640 from holding Hawkins or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Hawkins
Performance |
| Timeline |
| Siriuspoint |
| Hawkins |
Siriuspoint and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Hawkins
The main advantage of trading using opposite Siriuspoint and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Greenlight Capital Re | Siriuspoint vs. RenaissanceRe Holdings | Siriuspoint vs. Renaissancere Holdings |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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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