Correlation Between HANOVER INSURANCE and LION ONE
Can any of the company-specific risk be diversified away by investing in both HANOVER INSURANCE and LION ONE 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 HANOVER INSURANCE and LION ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANOVER INSURANCE and LION ONE METALS, you can compare the effects of market volatilities on HANOVER INSURANCE and LION ONE 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 LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANOVER INSURANCE and LION ONE.
Diversification Opportunities for HANOVER INSURANCE and LION ONE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HANOVER and LION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HANOVER INSURANCE and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS 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 LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of HANOVER INSURANCE i.e., HANOVER INSURANCE and LION ONE go up and down completely randomly.
Pair Corralation between HANOVER INSURANCE and LION ONE
Assuming the 90 days trading horizon HANOVER INSURANCE is expected to generate 1.16 times more return on investment than LION ONE. However, HANOVER INSURANCE is 1.16 times more volatile than LION ONE METALS. It trades about 0.37 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.31 per unit of risk. If you would invest 13,300 in HANOVER INSURANCE on September 5, 2024 and sell it today you would earn a total of 1,900 from holding HANOVER INSURANCE or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HANOVER INSURANCE vs. LION ONE METALS
Performance |
| Timeline |
| HANOVER INSURANCE |
| LION ONE METALS |
HANOVER INSURANCE and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANOVER INSURANCE and LION ONE
The main advantage of trading using opposite HANOVER INSURANCE and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANOVER INSURANCE position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| HANOVER INSURANCE vs. TOTAL GABON | HANOVER INSURANCE vs. Walgreens Boots Alliance | HANOVER INSURANCE vs. Peak Resources Limited |
| LION ONE vs. Cars Inc | LION ONE vs. Japan Post Insurance | LION ONE vs. HANOVER INSURANCE | LION ONE vs. GEELY AUTOMOBILE |
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..
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