Correlation Between Lithium Argentina and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Lithium Argentina 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 Lithium Argentina and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lithium Argentina AG and Hamilton Insurance Group,, you can compare the effects of market volatilities on Lithium Argentina 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 Lithium Argentina with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lithium Argentina and Hamilton Insurance.
Diversification Opportunities for Lithium Argentina and Hamilton Insurance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lithium and Hamilton is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lithium Argentina AG 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 Lithium Argentina 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 Lithium Argentina AG 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 Lithium Argentina i.e., Lithium Argentina and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Lithium Argentina and Hamilton Insurance
Considering the 90-day investment horizon Lithium Argentina AG is expected to generate 3.17 times more return on investment than Hamilton Insurance. However, Lithium Argentina is 3.17 times more volatile than Hamilton Insurance Group,. It trades about 0.15 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.1 per unit of risk. If you would invest 337.00 in Lithium Argentina AG on September 3, 2025 and sell it today you would earn a total of 212.00 from holding Lithium Argentina AG or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lithium Argentina AG vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Lithium Argentina |
| Hamilton Insurance Group, |
Lithium Argentina and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lithium Argentina and Hamilton Insurance
The main advantage of trading using opposite Lithium Argentina and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lithium Argentina 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.| Lithium Argentina vs. Yooma Wellness | Lithium Argentina vs. CVS Health Corp | Lithium Argentina vs. Bausch Health Companies | Lithium Argentina vs. PureTech Health plc |
| Hamilton Insurance vs. Everest Group | Hamilton Insurance vs. Brookfield Wealth Solutions | Hamilton Insurance vs. Conduit Holdings | Hamilton Insurance vs. Prenetics Global |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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