Correlation Between HANOVER INSURANCE and Ming Le
Can any of the company-specific risk be diversified away by investing in both HANOVER INSURANCE and Ming Le 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 Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANOVER INSURANCE and Ming Le Sports, you can compare the effects of market volatilities on HANOVER INSURANCE and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANOVER INSURANCE and Ming Le.
Diversification Opportunities for HANOVER INSURANCE and Ming Le
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HANOVER and Ming is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HANOVER INSURANCE and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports 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 Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of HANOVER INSURANCE i.e., HANOVER INSURANCE and Ming Le go up and down completely randomly.
Pair Corralation between HANOVER INSURANCE and Ming Le
Assuming the 90 days trading horizon HANOVER INSURANCE is expected to generate 1.26 times more return on investment than Ming Le. However, HANOVER INSURANCE is 1.26 times more volatile than Ming Le Sports. It trades about 0.05 of its potential returns per unit of risk. Ming Le Sports is currently generating about -0.21 per unit of risk. If you would invest 14,600 in HANOVER INSURANCE on December 11, 2024 and sell it today you would earn a total of 500.00 from holding HANOVER INSURANCE or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HANOVER INSURANCE vs. Ming Le Sports
Performance |
| Timeline |
| HANOVER INSURANCE |
| Ming Le Sports |
HANOVER INSURANCE and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANOVER INSURANCE and Ming Le
The main advantage of trading using opposite HANOVER INSURANCE and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANOVER INSURANCE position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| HANOVER INSURANCE vs. STMicroelectronics NV | HANOVER INSURANCE vs. Sims Metal Management | HANOVER INSURANCE vs. AGF Management Limited | HANOVER INSURANCE vs. Jupiter Fund Management |
| Ming Le vs. COSMOSTEEL HLDGS | Ming Le vs. ASURE SOFTWARE | Ming Le vs. Veolia Environnement SA | Ming Le vs. Daido Steel Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |