Correlation Between Electrovaya Common and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common 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 Electrovaya Common and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrovaya Common Shares and Hamilton Insurance Group,, you can compare the effects of market volatilities on Electrovaya Common 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 Electrovaya Common with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Hamilton Insurance.
Diversification Opportunities for Electrovaya Common and Hamilton Insurance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electrovaya and Hamilton is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares 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 Electrovaya Common 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 Electrovaya Common Shares 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 Electrovaya Common i.e., Electrovaya Common and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Electrovaya Common and Hamilton Insurance
Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the Hamilton Insurance. In addition to that, Electrovaya Common is 2.08 times more volatile than Hamilton Insurance Group,. It trades about -0.01 of its total potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.12 per unit of volatility. If you would invest 1,890 in Hamilton Insurance Group, on December 29, 2024 and sell it today you would earn a total of 244.00 from holding Hamilton Insurance Group, or generate 12.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Electrovaya Common Shares vs. Hamilton Insurance Group,
Performance |
Timeline |
Electrovaya Common Shares |
Hamilton Insurance Group, |
Electrovaya Common and Hamilton Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Electrovaya Common and Hamilton Insurance
The main advantage of trading using opposite Electrovaya Common and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common 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.Electrovaya Common vs. nVent Electric PLC | Electrovaya Common vs. Hubbell | Electrovaya Common vs. Advanced Energy Industries | Electrovaya Common vs. Energizer Holdings |
Hamilton Insurance vs. Merit Medical Systems | Hamilton Insurance vs. Tower One Wireless | Hamilton Insurance vs. Amgen Inc | Hamilton Insurance vs. The Joint 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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