Correlation Between U Haul and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both U Haul 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 U Haul and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Hamilton Insurance Group,, you can compare the effects of market volatilities on U Haul 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 U Haul with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Hamilton Insurance.
Diversification Opportunities for U Haul and Hamilton Insurance
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UHAL and Hamilton is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding 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 U Haul 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 U Haul Holding 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 U Haul i.e., U Haul and Hamilton Insurance go up and down completely randomly.
Pair Corralation between U Haul and Hamilton Insurance
Given the investment horizon of 90 days U Haul is expected to generate 2.18 times less return on investment than Hamilton Insurance. But when comparing it to its historical volatility, U Haul Holding is 1.22 times less risky than Hamilton Insurance. It trades about 0.02 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Hamilton Insurance Group, on January 10, 2025 and sell it today you would earn a total of 268.00 from holding Hamilton Insurance Group, or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.17% |
| Values | Daily Returns |
U Haul Holding vs. Hamilton Insurance Group,
Performance |
| Timeline |
| U Haul Holding |
| Hamilton Insurance Group, |
U Haul and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Hamilton Insurance
The main advantage of trading using opposite U Haul and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| Hamilton Insurance vs. Harmony Gold Mining | Hamilton Insurance vs. Village Super Market | Hamilton Insurance vs. MOGU Inc | Hamilton Insurance vs. Titan Machinery |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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