Correlation Between Conduit Holdings and Hamilton Insurance

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Conduit Holdings  vs.  Hamilton Insurance Group,

 Performance 
       Timeline  
Conduit Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Conduit Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Conduit Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.
Hamilton Insurance Group, 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
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 January 2026.

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.
The idea behind Conduit Holdings 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.

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