Correlation Between Voya Financial and Hamilton Insurance

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

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

Diversification Opportunities for Voya Financial and Hamilton Insurance

-0.31

Correlation Coefficient

Voya Financial  Hamilton Insurance

Very good diversification

The 3 months correlation between Voya and Hamilton is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial 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 Voya Financial 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 Voya Financial 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 Voya Financial i.e., Voya Financial and Hamilton Insurance go up and down completely randomly.

Pair Corralation between Voya Financial and Hamilton Insurance

Given the investment horizon of 90 days Voya Financial is expected to generate 0.6 times more return on investment than Hamilton Insurance. However, Voya Financial is 1.68 times less risky than Hamilton Insurance. It trades about 0.07 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.03 per unit of risk. If you would invest  6,877  in Voya Financial on October 26, 2024 and sell it today you would earn a total of  82.00  from holding Voya Financial or generate 1.19% return on investment over 90 days.

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

Voya Financial  vs.  Hamilton Insurance Group,

Voya Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Hamilton Insurance Group,

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Insurance Group, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile 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 Voya Financial and Hamilton Insurance

The main advantage of trading using opposite Voya Financial and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial 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 Voya Financial 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.