Correlation Between Hanover Insurance and Sto SE
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Sto SE 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 Sto SE 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 Sto SE Co, you can compare the effects of market volatilities on Hanover Insurance and Sto SE 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 Sto SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Sto SE.
Diversification Opportunities for Hanover Insurance and Sto SE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanover and Sto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Sto SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sto SE 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 Sto SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sto SE has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Sto SE go up and down completely randomly.
Pair Corralation between Hanover Insurance and Sto SE
If you would invest 13,500 in The Hanover Insurance on September 2, 2024 and sell it today you would earn a total of 2,300 from holding The Hanover Insurance or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Hanover Insurance vs. Sto SE Co
Performance |
| Timeline |
| Hanover Insurance |
| Sto SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanover Insurance and Sto SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Sto SE
The main advantage of trading using opposite Hanover Insurance and Sto SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Sto SE 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 Sto SE will offset losses from the drop in Sto SE's long position.| Hanover Insurance vs. Lion One Metals | Hanover Insurance vs. Jacquet Metal Service | Hanover Insurance vs. PARKEN Sport Entertainment | Hanover Insurance vs. Aluminum of |
| Sto SE vs. HK Electric Investments | Sto SE vs. GAMESTOP | Sto SE vs. TSOGO SUN GAMING | Sto SE vs. Virtus Investment Partners |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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