Correlation Between China Railway and HANOVER INSURANCE
Can any of the company-specific risk be diversified away by investing in both China Railway and HANOVER 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 China Railway and HANOVER INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Railway Construction and HANOVER INSURANCE, you can compare the effects of market volatilities on China Railway and HANOVER 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 China Railway with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and HANOVER INSURANCE.
Diversification Opportunities for China Railway and HANOVER INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and HANOVER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and China Railway 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 China Railway Construction are associated (or correlated) with HANOVER INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANOVER INSURANCE has no effect on the direction of China Railway i.e., China Railway and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between China Railway and HANOVER INSURANCE
If you would invest 14,300 in HANOVER INSURANCE on November 8, 2024 and sell it today you would earn a total of 500.00 from holding HANOVER INSURANCE or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Railway Construction vs. HANOVER INSURANCE
Performance |
| Timeline |
| China Railway Constr |
| HANOVER INSURANCE |
China Railway and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and HANOVER INSURANCE
The main advantage of trading using opposite China Railway and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, HANOVER 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 HANOVER INSURANCE will offset losses from the drop in HANOVER INSURANCE's long position.| China Railway vs. BOS BETTER ONLINE | China Railway vs. LG Electronics | China Railway vs. TT Electronics PLC | China Railway vs. Richardson Electronics |
| HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |