Correlation Between Conduit Holdings and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Conduit Holdings 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 Conduit Holdings and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conduit Holdings and Hamilton Insurance Group,, you can compare the effects of market volatilities on Conduit Holdings 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 Conduit Holdings with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conduit Holdings and Hamilton Insurance.
Diversification Opportunities for Conduit Holdings and Hamilton Insurance
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Conduit and Hamilton is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Conduit Holdings 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 Conduit Holdings 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 Conduit Holdings 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 Conduit Holdings i.e., Conduit Holdings and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Conduit Holdings and Hamilton Insurance
Assuming the 90 days trading horizon Conduit Holdings is expected to generate 0.86 times more return on investment than Hamilton Insurance. However, Conduit Holdings is 1.17 times less risky than Hamilton Insurance. It trades about 0.16 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.09 per unit of risk. If you would invest 29,050 in Conduit Holdings on September 3, 2025 and sell it today you would earn a total of 5,400 from holding Conduit Holdings or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Conduit Holdings vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Conduit Holdings |
| Hamilton Insurance Group, |
Conduit Holdings and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conduit Holdings and Hamilton Insurance
The main advantage of trading using opposite Conduit Holdings and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conduit Holdings 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.| Conduit Holdings vs. Endeavour Mining Corp | Conduit Holdings vs. DFS Furniture PLC | Conduit Holdings vs. Metals Exploration Plc | Conduit Holdings vs. Innovative Industrial Properties |
| Hamilton Insurance vs. Avidus Management Group | Hamilton Insurance vs. Greentown Management Holdings | Hamilton Insurance vs. Sims Metal Management | Hamilton Insurance vs. GameStop 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 Stocks Directory module to find actively traded stocks across global markets.
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