Correlation Between Hamilton Insurance and Smith Micro
Can any of the company-specific risk be diversified away by investing in both Hamilton Insurance and Smith Micro 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 Smith Micro 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 Smith Micro Software, you can compare the effects of market volatilities on Hamilton Insurance and Smith Micro 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 Smith Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Insurance and Smith Micro.
Diversification Opportunities for Hamilton Insurance and Smith Micro
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hamilton and Smith is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Insurance Group, and Smith Micro Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Micro Software 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 Smith Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Micro Software has no effect on the direction of Hamilton Insurance i.e., Hamilton Insurance and Smith Micro go up and down completely randomly.
Pair Corralation between Hamilton Insurance and Smith Micro
Allowing for the 90-day total investment horizon Hamilton Insurance Group, is expected to generate 0.43 times more return on investment than Smith Micro. However, Hamilton Insurance Group, is 2.34 times less risky than Smith Micro. It trades about 0.1 of its potential returns per unit of risk. Smith Micro Software is currently generating about -0.04 per unit of risk. If you would invest 2,429 in Hamilton Insurance Group, on September 12, 2025 and sell it today you would earn a total of 274.00 from holding Hamilton Insurance Group, or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Insurance Group, vs. Smith Micro Software
Performance |
| Timeline |
| Hamilton Insurance Group, |
| Smith Micro Software |
Hamilton Insurance and Smith Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Insurance and Smith Micro
The main advantage of trading using opposite Hamilton Insurance and Smith Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Insurance position performs unexpectedly, Smith Micro 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 Smith Micro will offset losses from the drop in Smith Micro'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 |
| Smith Micro vs. Shopify | Smith Micro vs. SAP SE ADR | Smith Micro vs. Uber Technologies | Smith Micro vs. Applovin 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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