Correlation Between Hanover Insurance and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Jupiter Fund 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 Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hanover Insurance and Jupiter Fund Management, you can compare the effects of market volatilities on Hanover Insurance and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Jupiter Fund.
Diversification Opportunities for Hanover Insurance and Jupiter Fund
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanover and Jupiter is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 The Hanover Insurance are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Jupiter Fund go up and down completely randomly.
Pair Corralation between Hanover Insurance and Jupiter Fund
Assuming the 90 days horizon The Hanover Insurance is expected to under-perform the Jupiter Fund. But the stock apears to be less risky and, when comparing its historical volatility, The Hanover Insurance is 1.6 times less risky than Jupiter Fund. The stock trades about -0.13 of its potential returns per unit of risk. The Jupiter Fund Management is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Jupiter Fund Management on September 29, 2024 and sell it today you would earn a total of 7.00 from holding Jupiter Fund Management or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hanover Insurance vs. Jupiter Fund Management
Performance |
| Timeline |
| Hanover Insurance |
| Jupiter Fund Management |
Hanover Insurance and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Jupiter Fund
The main advantage of trading using opposite Hanover Insurance and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Hanover Insurance vs. Tokio Marine Holdings | Hanover Insurance vs. W R Berkley | Hanover Insurance vs. Loews Corp | Hanover Insurance vs. ZhongAn Online P |
| Jupiter Fund vs. The Hanover Insurance | Jupiter Fund vs. Japan Post Insurance | Jupiter Fund vs. UNIQA INSURANCE GR | Jupiter Fund vs. LIFENET INSURANCE 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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