Correlation Between Universal Insurance and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Universal Insurance 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 Universal Insurance and Hamilton Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Insurance Holdings and Hamilton Insurance Group,, you can compare the effects of market volatilities on Universal Insurance 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 Universal Insurance with a short position of Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Insurance and Hamilton Insurance.
Diversification Opportunities for Universal Insurance and Hamilton Insurance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Universal and Hamilton is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Universal Insurance 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 Universal 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 Universal Insurance 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 Universal Insurance i.e., Universal Insurance and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Universal Insurance and Hamilton Insurance
Considering the 90-day investment horizon Universal Insurance Holdings is expected to generate 1.23 times more return on investment than Hamilton Insurance. However, Universal Insurance is 1.23 times more volatile than Hamilton Insurance Group,. It trades about 0.17 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 2,445 in Universal Insurance Holdings on September 10, 2025 and sell it today you would earn a total of 682.00 from holding Universal Insurance Holdings or generate 27.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Insurance Holdings vs. Hamilton Insurance Group,
Performance |
| Timeline |
| Universal Insurance |
| Hamilton Insurance Group, |
Universal Insurance and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Insurance and Hamilton Insurance
The main advantage of trading using opposite Universal Insurance and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Insurance 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.| Universal Insurance vs. United Fire Group | Universal Insurance vs. Heritage Insurance Hldgs | Universal Insurance vs. Ategrity Specialty Insurance | Universal Insurance vs. Safety Insurance Group |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |