Correlation Between Hanover Insurance and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Hanover Insurance and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and ANTA SPORTS.
Diversification Opportunities for Hanover Insurance and ANTA SPORTS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanover and ANTA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Hanover Insurance and ANTA SPORTS
Assuming the 90 days horizon The Hanover Insurance is expected to generate 0.48 times more return on investment than ANTA SPORTS. However, The Hanover Insurance is 2.1 times less risky than ANTA SPORTS. It trades about 0.09 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.04 per unit of risk. If you would invest 10,332 in The Hanover Insurance on August 31, 2024 and sell it today you would earn a total of 5,468 from holding The Hanover Insurance or generate 52.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hanover Insurance vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Hanover Insurance |
| ANTA SPORTS PRODUCT |
Hanover Insurance and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and ANTA SPORTS
The main advantage of trading using opposite Hanover Insurance and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Hanover Insurance vs. Pentair plc | Hanover Insurance vs. AIR LIQUIDE ADR | Hanover Insurance vs. Norwegian Air Shuttle | Hanover Insurance vs. Computer And Technologies |
| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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