Correlation Between HANOVER INSURANCE and INTERSHOP Communications
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By analyzing existing cross correlation between HANOVER INSURANCE and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on HANOVER INSURANCE and INTERSHOP Communications 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 HANOVER INSURANCE with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANOVER INSURANCE and INTERSHOP Communications.
Diversification Opportunities for HANOVER INSURANCE and INTERSHOP Communications
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HANOVER and INTERSHOP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HANOVER INSURANCE and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and HANOVER 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 HANOVER INSURANCE are associated (or correlated) with INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of HANOVER INSURANCE i.e., HANOVER INSURANCE and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between HANOVER INSURANCE and INTERSHOP Communications
Assuming the 90 days trading horizon HANOVER INSURANCE is expected to generate 0.64 times more return on investment than INTERSHOP Communications. However, HANOVER INSURANCE is 1.57 times less risky than INTERSHOP Communications. It trades about -0.09 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.22 per unit of risk. If you would invest 15,100 in HANOVER INSURANCE on September 14, 2024 and sell it today you would lose (400.00) from holding HANOVER INSURANCE or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HANOVER INSURANCE vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| HANOVER INSURANCE |
| INTERSHOP Communications |
HANOVER INSURANCE and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANOVER INSURANCE and INTERSHOP Communications
The main advantage of trading using opposite HANOVER INSURANCE and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANOVER INSURANCE position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc |
| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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