Correlation Between Siriuspoint and Hamilton Insurance

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

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

Diversification Opportunities for Siriuspoint and Hamilton Insurance

0.59

Correlation Coefficient

Siriuspoint  Hamilton Insurance

Very weak diversification

The 3 months correlation between Siriuspoint and Hamilton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint 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 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 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 Siriuspoint i.e., Siriuspoint and Hamilton Insurance go up and down completely randomly.

Pair Corralation between Siriuspoint and Hamilton Insurance

Given the investment horizon of 90 days Siriuspoint is expected to generate 2.79 times more return on investment than Hamilton Insurance. However, Siriuspoint is 2.79 times more volatile than Hamilton Insurance Group,. It trades about 0.03 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about -0.06 per unit of risk. If you would invest  1,563  in Siriuspoint on October 5, 2024 and sell it today you would earn a total of  11.00  from holding Siriuspoint or generate 0.7% return on investment over 90 days.

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

Siriuspoint  vs.  Hamilton Insurance Group,

Siriuspoint

Risk-Adjusted Performance

9 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siriuspoint are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Siriuspoint unveiled solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Insurance Group,

Risk-Adjusted Performance

7 of 100

Weak

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 unsteady technical and fundamental indicators, Hamilton Insurance may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Siriuspoint and Hamilton Insurance

The main advantage of trading using opposite Siriuspoint and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint 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.

The idea behind Siriuspoint and Hamilton Insurance Group, 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 Stocks Directory module to find actively traded stocks across global markets.