Correlation Between Hanover Insurance and Avance Gas
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Avance Gas 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 Avance Gas 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 Avance Gas Holding, you can compare the effects of market volatilities on Hanover Insurance and Avance Gas 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 Avance Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Avance Gas.
Diversification Opportunities for Hanover Insurance and Avance Gas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanover and Avance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Avance Gas Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avance Gas Holding 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 Avance Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avance Gas Holding has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Avance Gas go up and down completely randomly.
Pair Corralation between Hanover Insurance and Avance Gas
If you would invest 0.00 in Avance Gas Holding on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Avance Gas Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
The Hanover Insurance vs. Avance Gas Holding
Performance |
| Timeline |
| Hanover Insurance |
| Avance Gas Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanover Insurance and Avance Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Avance Gas
The main advantage of trading using opposite Hanover Insurance and Avance Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Avance Gas 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 Avance Gas will offset losses from the drop in Avance Gas' long position.| Hanover Insurance vs. The Peoples Insurance | Hanover Insurance vs. Loews Corp | Hanover Insurance vs. Superior Plus Corp | Hanover Insurance vs. NMI Holdings |
| Avance Gas vs. PACIFIC ONLINE | Avance Gas vs. GRIFFIN MINING LTD | Avance Gas vs. Lamar Advertising | Avance Gas vs. ADRIATIC METALS LS 013355 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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