Correlation Between Hanover Insurance and Citigroup
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By analyzing existing cross correlation between The Hanover Insurance and Citigroup, you can compare the effects of market volatilities on Hanover Insurance and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Citigroup.
Diversification Opportunities for Hanover Insurance and Citigroup
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hanover and Citigroup is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Citigroup go up and down completely randomly.
Pair Corralation between Hanover Insurance and Citigroup
Assuming the 90 days horizon Hanover Insurance is expected to generate 1.88 times less return on investment than Citigroup. But when comparing it to its historical volatility, The Hanover Insurance is 1.15 times less risky than Citigroup. It trades about 0.04 of its potential returns per unit of risk. Citigroup is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,043 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,674 from holding Citigroup or generate 66.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hanover Insurance vs. Citigroup
Performance |
| Timeline |
| Hanover Insurance |
| Citigroup |
Hanover Insurance and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Citigroup
The main advantage of trading using opposite Hanover Insurance and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Hanover Insurance vs. Datadog | Hanover Insurance vs. CARSALESCOM | Hanover Insurance vs. DATANG INTL POW | Hanover Insurance vs. Grupo Carso SAB |
| Citigroup vs. Data3 Limited | Citigroup vs. Datadog | Citigroup vs. Apollo Investment Corp | Citigroup vs. National Storage Affiliates |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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