Correlation Between EPSILON HEALTHCARE and Hanover Insurance
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE 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 EPSILON HEALTHCARE and Hanover Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and The Hanover Insurance, you can compare the effects of market volatilities on EPSILON HEALTHCARE 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 EPSILON HEALTHCARE with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Hanover Insurance.
Diversification Opportunities for EPSILON HEALTHCARE and Hanover Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Hanover is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Hanover Insurance go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Hanover Insurance
If you would invest 0.75 in EPSILON HEALTHCARE LTD on October 30, 2024 and sell it today you would earn a total of 0.00 from holding EPSILON HEALTHCARE LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. The Hanover Insurance
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Hanover Insurance |
EPSILON HEALTHCARE and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Hanover Insurance
The main advantage of trading using opposite EPSILON HEALTHCARE and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE 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.| EPSILON HEALTHCARE vs. Tencent Music Entertainment | EPSILON HEALTHCARE vs. MOVIE GAMES SA | EPSILON HEALTHCARE vs. EEDUCATION ALBERT AB | EPSILON HEALTHCARE vs. Warner Music Group |
| Hanover Insurance vs. EPSILON HEALTHCARE LTD | Hanover Insurance vs. NAGOYA RAILROAD | Hanover Insurance vs. SAFEROADS HLDGS | Hanover Insurance vs. PURETECH HEALTH PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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