Correlation Between Hamilton Insurance and Oxbridge

Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Oxbridge 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 Oxbridge 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 Oxbridge Re Holdings, you can compare the effects of market volatilities on Hamilton Insurance and Oxbridge 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 Oxbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Oxbridge.

Diversification Opportunities for Hamilton Insurance and Oxbridge

-0.66

Correlation Coefficient

Hamilton Insurance  Oxbridge

Excellent diversification

The 3 months correlation between Hamilton and Oxbridge is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings 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 Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Oxbridge go up and down completely randomly.

Pair Corralation between Hamilton Insurance and Oxbridge

Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 0.27 times more return on investment than Oxbridge. However, Hamilton Insurance Group, is 3.71 times less risky than Oxbridge. It trades about 0.1 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about -0.08 per unit of risk. If you would invest  1,917  in Hamilton Insurance Group, on December 20, 2024 and sell it today you would earn a total of  186.00  from holding Hamilton Insurance Group, or generate 9.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hamilton Insurance Group,  vs.  Oxbridge Re Holdings

Hamilton Insurance Group,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Insurance Group, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Hamilton Insurance may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Oxbridge Re Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oxbridge Re Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Hamilton Insurance and Oxbridge

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

The idea behind Hamilton Insurance Group, and Oxbridge Re Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.