HANOVER INSURANCE (Germany) Probability of Future Stock Price Finishing Under 154.60
| AF4 Stock | EUR 152.00 1.00 0.66% |
HANOVER |
HANOVER INSURANCE Target Price Odds to finish below 154.60
The tendency of HANOVER Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to stay under € 154.60 after 90 days |
| 152.00 | 90 days | 154.60 | close to 99 |
Based on a normal probability distribution, the odds of HANOVER INSURANCE to stay under € 154.60 after 90 days from now is close to 99 (This HANOVER INSURANCE probability density function shows the probability of HANOVER Stock to fall within a particular range of prices over 90 days) . Probability of HANOVER INSURANCE price to stay between its current price of € 152.00 and € 154.60 at the end of the 90-day period is near 1 .
Assuming the 90 days trading horizon HANOVER INSURANCE has a beta of -0.18. This suggests as returns on the benchmark increase, returns on holding HANOVER INSURANCE are expected to decrease at a much lower rate. During a bear market, however, HANOVER INSURANCE is likely to outperform the market. Additionally HANOVER INSURANCE has an alpha of 0.3888, implying that it can generate a 0.39 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). HANOVER INSURANCE Price Density |
| Price |
Predictive Modules for HANOVER INSURANCE
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as HANOVER INSURANCE. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.HANOVER INSURANCE Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. HANOVER INSURANCE is not an exception. The market had few large corrections towards the HANOVER INSURANCE's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold HANOVER INSURANCE, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of HANOVER INSURANCE within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.39 | |
β | Beta against Dow Jones | -0.18 | |
σ | Overall volatility | 8.16 | |
Ir | Information ratio | 0.19 |
HANOVER INSURANCE Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of HANOVER Stock often depends not only on the future outlook of the current and potential HANOVER INSURANCE's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. HANOVER INSURANCE's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 35.6 M | |
| Dividends Paid | 108.9 M |
HANOVER INSURANCE Technical Analysis
HANOVER INSURANCE's future price can be derived by breaking down and analyzing its technical indicators over time. HANOVER Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of HANOVER INSURANCE. In general, you should focus on analyzing HANOVER Stock price patterns and their correlations with different microeconomic environments and drivers.
HANOVER INSURANCE Predictive Forecast Models
HANOVER INSURANCE's time-series forecasting models is one of many HANOVER INSURANCE's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary HANOVER INSURANCE's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards HANOVER INSURANCE in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, HANOVER INSURANCE's short interest history, or implied volatility extrapolated from HANOVER INSURANCE options trading.
Other Information on Investing in HANOVER Stock
HANOVER INSURANCE financial ratios help investors to determine whether HANOVER Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in HANOVER with respect to the benefits of owning HANOVER INSURANCE security.