Correlation Between Hamilton Insurance and Lear
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Lear 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 Lear 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 Lear Corporation, you can compare the effects of market volatilities on Hamilton Insurance and Lear 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 Lear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Lear.
Diversification Opportunities for Hamilton Insurance and Lear
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hamilton and Lear is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Lear Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lear 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 Lear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lear has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Lear go up and down completely randomly.
Pair Corralation between Hamilton Insurance and Lear
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 1.19 times more return on investment than Lear. However, Hamilton Insurance is 1.19 times more volatile than Lear Corporation. It trades about 0.1 of its potential returns per unit of risk. Lear Corporation is currently generating about -0.02 per unit of risk. If you would invest 2,375 in Hamilton Insurance Group, on September 9, 2025 and sell it today you would earn a total of 275.00 from holding Hamilton Insurance Group, or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Insurance Group, vs. Lear Corp.
Performance |
| Timeline |
| Hamilton Insurance Group, |
| Lear |
Hamilton Insurance and Lear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and Lear
The main advantage of trading using opposite Hamilton Insurance and Lear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Lear 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 Lear will offset losses from the drop in Lear's long position.| Hamilton Insurance vs. Siriuspoint | Hamilton Insurance vs. Western Alliance Bancorporation | Hamilton Insurance vs. Provident Financial Services | Hamilton Insurance vs. First Financial Bancorp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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