Correlation Between Hamilton Insurance and Finnovate Acquisition

Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Finnovate Acquisition 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 Hamilton Insurance and Finnovate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hamilton Insurance Group, and Finnovate Acquisition Corp, you can compare the effects of market volatilities on Hamilton Insurance and Finnovate Acquisition 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 Hamilton Insurance with a short position of Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Finnovate Acquisition.

Diversification Opportunities for Hamilton Insurance and Finnovate Acquisition

-0.13

Correlation Coefficient

Hamilton Insurance  Finnovate Acquisition

Good diversification

The 3 months correlation between Hamilton and Finnovate is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate Acquisition and Hamilton Insurance 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 Hamilton Insurance Group, are associated (or correlated) with Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Finnovate Acquisition go up and down completely randomly.

Pair Corralation between Hamilton Insurance and Finnovate Acquisition

If you would invest  1,913  in Hamilton Insurance Group, on December 2, 2024 and sell it today you would earn a total of  43.00  from holding Hamilton Insurance Group, or generate 2.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	9.52%
Values	Daily Returns

Hamilton Insurance Group,  vs.  Finnovate Acquisition Corp

Hamilton Insurance Group,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Insurance Group, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Hamilton Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Finnovate Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Finnovate Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Finnovate Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hamilton Insurance and Finnovate Acquisition

The main advantage of trading using opposite Hamilton Insurance and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Finnovate Acquisition 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 Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.

The idea behind Hamilton Insurance Group, and Finnovate Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.